115th Congress Expected to Move Quickly On National Flood Insurance Re-Authorization Legislation
Dec 20, 2016
The U.S. House Financial Services Subcommittee on Housing and Insurance is expected to move quickly with draft legislation in January 2017 to re-authorize the National Flood Insurance Program (“NFIP”), which expires on September 30, 2017.
Early in December, Subcommittee Chairman Blaine Luetkemeyer (R-Mo.) circulated a set of NFIP re-authorization principles.
To view his document, click here.
Representative Luetkemeyer’s proposal was preceded by an October document on NFIP re-authorization from the National Association of Insurance Commissioners (“NAIC”).
To view the NAIC version, click here.
Congress, which begins its 115th meeting on January 3, 2017, will be considering potential changes and improvements to the program as part of the NFIP re-authorization process.
The NFIP seeks to decrease the costs and consequences of flooding for homeowners while at the same time encouraging flood mitigation and reducing the dependence on federal disaster assistance.
Given these objectives, Congress faces the challenge of trying to maintain a balance between improving the financial solvency of the program and reducing taxpayer exposure while also being mindful of affordability concerns. Lawmakers will have to tackle the tension between risk-based pricing practices and affordable rates.
NFIP reinsurer Guy Carpenter issued a two-part comprehensive report on the NFIP’s 2016 Reinsurance Initiative yesterday, December 19.
To read the report, click here.
For an in-depth guide to the NFIP from the Federal Emergency Management Agency, click here.
Should you have any questions or comments, please contact Colodny Fass.
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