How to summarize this

Insurance companies now refuse to offer hurricane or earthquake insurance in many parts of the world for these relativelynon-diversifiablerisks. When Nationwide Insurance Company announced that it was sharply curtailing sales of new policies along the Gulf of Mexico and the eastern seaboard from Texas to Maine, a company official explained, "Prudence requires us to diligently manage our exposure to catastrophic losses." In response to such decisions, the U.S. government has stepped in to partially replace private insurers and provide subsidized insurance. But the major argument against programs that subsidize insurance is that they provide incentives to engage in an excessively risky behavior, such as building or buying homes in areas that have a high probability of being flooded. What is your opinion about the issue - Should the government provide subsidized insurance or should the free market be left to provide such insurance?

In subsidized insurance the government intervention in property insurance markets makes insurance for severe destruction affordable. It supports low income and working class people who may not be unable to afford insurance therefore not be able to buy or remain in their homes. However it was known that living close to water is a privilege of the affluent. So people with more income are getting subsidies instead of really needed one. So subsidies go only to some classes of victims of severe disaster but not to all.In the free market, there would be no government intervention in the free market. Private parties may assume excessive risk. In the free market the premium rate is decided on the current functioning of the market and No moral ground for poor and working class people. After going through all the pros and cons of subsidized Insurance and free market insurance , my conclusion would be the insurance may have its own limitations but it is sure and important to give assistance to people who are affected due to the big mess which is not possible through free market insurance as it may exploit the poor and the working class. The subsidy is to promote a redistribution that benefits the weak population economically.