Lobby group urges reforms to US flood insurance programme

The Banking Committee which will soon act on the US flood insurance  reauthorization and reform National Flood Insurance Program (NFIP) should make meaningful reforms to the programme to ensure it is financially stable in the long-term, lobby group SmarterSafer said.

The NFIP is up for reauthorization in September and is currently $25 billion in debt.

SmarterSafer, an organisation representing insurance interests among others, sent a list of requests in a June 29 letter to the chairman
of the Senate Committee on Banking, Housing, and Urban Affairs.

The reauthorisation package should require Federal Emergency Management Agency (FEMA) to ensure mapping data has both greater engineering confidence and includes property level elevation information through light detection and ranging surveying. This is needed to ensure FEMA’s flood maps accurately depict areas likely to flood, SmarterSafer said. Without more accurate mapping, homeowners may be misled as to flood risk and burdened by having to prove their elevation through expensive elevation certificates and time-consuming appeals with FEMA.

Any reform bill must also include investments in mitigation so that the most at-risk properties have the ability to reduce their risk, the lobby group added. “We urge the Committee to include investments in mitigation as well as a requirement that FEMA work with lenders and the Federal Housing Administration to facilitate mitigation loans. We also urge the Committee to include requirements that communities plan for known flooding risks, and assess community- wide nature based mitigation efforts that are cost-effective and will reduce future flooding.”

In addition, any reform bill must include clarification of the current law that homeowners can satisfy mandatory purchase requirements with private flood policies, SmarterSafer said. The coalition strongly urges the Committee to include the Heller-Tester bill, the Flood Insurance Market Parity and Modernization Act, that is merely a clarification of current law but is needed to assure lenders they can accept private policies. Homeowners in harm's way should not be forced to purchase a National Flood Insurance Program policy if they can find a more affordable private policy merely because of a lack of clarity.

Use code "Save20" and to save 20% on selected tickets for  for  Intelligent InsurTECH Europe 2017 - Offer ends July 15th

Today’s stories

Nexus acquires marine cargo MGA from Aquila

Willis Re appoints Ingle as head of analytics

R&Q sells Norwegian subsidiary

SCOR Global Life Americas reshuffles senior leadership

Skuld appoints new boss of Oslo business

Alliant Americas taps East region expert to drive growth

QBE partners with Australasia's risk association RIMA

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.