Restructuring approved for U.S. flood program by Senate
Insurers are applauding the U.S. Senate’s approval of a bill that includes proposals to restructure the National Flood Insurance Program’s premium rates, update its flood maps and expand coverage areas where flood insurance would be mandatory.
Marc Racicot, president of the American Insurance Assn. in Washington, D.C., said in a statement that the group also is pleased that S.B. 2284 would forgive the NIFP’s $17 billion debt. The proposed legislation would put the program on sound financial footing and reauthorize the NFIP for five years, he said.
“The Senate also showed good judgment by not adding wind coverage to the NFIP and giving strong consideration to the findings of the Government Accountability Office study, that warned of the operational challenges and possible financial consequences” of doing so, Mr. Racicot said in the statement. “Increasing the operational burden on the NFIP is unnecessary, given that there is adequate wind coverage capacity in every state through either the traditional private market or state residual markets backed by private insurers.”
The AIA will work with the Senate and House of Representatives to reconcile differences in the NFIP reauthorization bills, Mr. Racicot said.
Tags: Flood