Happy Wednesday! In this week’s Big I Buzz: How the government shutdown could impact insurers.

Lengthy Government Shutdown to Impact Insurers, Says AM Best

As the government shutdown begins, AM Best warns of potential ripple effects across the insurance industry. The extent of disruption will depend on how long the shutdown lasts—previous shutdowns have generally been brief, with the longest in recent history (December 2018) lasting 34 days.

A prolonged shutdown could directly and indirectly affect insurers as consumers and businesses adjust spending and investment decisions. Possible impacts include reduced government spending, disruptions in social services, and volatility in financial markets.

Additionally, the National Flood Insurance Program (NFIP), administered by FEMA, expired on Sept. 30. Without reauthorization, FEMA will be unable to issue new flood policies. Read more here.

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