An insurer of last resort is an insurance company that offers a policy to a party who is viewed as an extremely high insurance risk. Since these applicants are considered uninsurable by most insurers, they cannot get an insurance policy to cover their risks, and certainly not at competitive market rates.
Insurers of last resort can be private insurance companies that opt to take on the heavy insurance risk (often at an elevated premium), like those that will issue auto insurance coverage to drivers with extremely poor driving records. But insurers of last resort are often government entities tasked with protecting the interests of a population often considered uninsurable, such as individuals with serious pre-existing medical conditions or homeowners who live in flood zones.
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