House Committee Examines Flood Insurance Legislation
On January 12, the House Financial Services Committee’s Subcommittee on Housing and Insurance held a hearing entitled “Opportunities and Challenges Facing the National Flood Insurance Program.” The hearing focused on the capacity of the private market to manage flood insurance needs and, challenges related to re-mapping predictable flood zones, the solvency of the National Flood Insurance Program (NFIP) plus possible reforms to the NFIP, and reinsurance. Then on January 13, the Housing and Insurance Subcommittee on January 13, held another hearing in the same vein entitled “How to Create a More Robust and Private Flood Insurance Marketplace.”
Much of the discussion in both hearings focused on the Flood Insurance Market Parity and Modernization Act (H.R. 2901) introduced by Representatives Dennis Ross (R-FL) and Patrick Murphy (D-FL) which would allow more private market involvement in flood insurance under state regulation. In general, both parties agreed that there is room for improvement of the NFIP, but more criticism was launched by Republican subcommittee members who noted that the private market could provide flood insurance more effectively and at a cheaper cost than the federal government.
To view these hearings, please click here (Jan. 12th) and here (Jan 13th)