Risk professionals urge Congress to renew NFIP

Risk professionals urge Congress to renew NFIP

Risk professionals urge Congress to renew NFIP With the National Flood Insurance Program (NFIP) set to expire on September 30, the American Academy of Actuaries is urging Congress to both renew and improve it.

“From a public-interest standpoint, there are two essential tasks facing lawmakers: first, renewing the program before a lapse causes disruptions; and second, improving the flood insurance framework and not just extending it in its current form,” said Rade Musulin, the academy’s vice president of casualty.

Celebrate excellence in insurance. Nominate a worthy colleague for the Insurance Business Awards!

In an August 23 letter to the Senate Banking Committee, the academy urged the senate to consider improvements to the NFIP that would:
  • Encourage growth of the private flood insurance market by making it clear that private insurance would satisfy mortgage-lending requirements and by sharing NFIP flood loss data with private insurers.
  • Protect against the creation of “artificial price disparities” between NFIP and private policies.
  • Address the NFIP’s multibillion-dollar debt and the need to plan ahead for future losses from mega-storms.
  • Reduce storm damage by expanding risk mitigation.
  • Modernize flood mapping.
  • Account for special conditions and differences affecting multifamily properties and “repetitive-loss” properties.
  • Anticipate the physical effects of rising sea levels and plan for them.

Related stories:
RIMS calls for NFIP reauthorization
How can tech make people safer from flooding in their homes?