How CBO Analyzes Public-Private Risk Sharing in Insurance Markets – Congressional Budget Office
CBO outlines how it analyzes public-private risk sharing in the federal terrorism insurance, crop insurance, and flood insurance programs. The agency also describes how that risk sharing affects the federal budget.
In some insurance markets, the federal government and private insurance companies share the financial risk of covering insured parties. In this report, the Congressional Budget Office outlines how it analyzes three different forms of public-private risk sharing that are used to provide terrorism insurance, crop insurance, and flood insurance. The agency also describes how each form of risk sharing affects the federal budget.