Legislation has been introduced before the US Congress to create a commission to examine and work out the best structure for a national catastrophe fund.

The bipartisan group that introduced the legislation wants to maximise private-sector participation in the development of a national fund to help provide cover for natural catastrophes.

The commission will also examine what roles the states should play in stabilising insurance markets after a catastrophe. It helps the Federal Government prepare for and manage disaster response, as well as reduce the likelihood of fraud and abuse in the federal repayment program.