This week, Roy Wright, FEMA’s deputy associate administrator for insurance and mitigation, announced NFIP changes aimed at increasing the program’s transparency and oversight. 

Revisions to the flood program include a proposed rulemaking to remove the copy and summary of the financial assistance and subsidy arrangement from the Code of Federal Regulations. According to a document released by the agency, “FEMA enters into a financial assistance/subsidy arrangement (Arrangement) with WYO companies to sell flood insurance policies under their own names and adjust and pay claims arising under the NFIP. Currently FEMA must undergo a rulemaking every time they seek to make a change.” This involves posting notice and comment in the Federal Register for a predetermined length of time.

If this copy is removed from the “rulemaking” process, FEMA suggests it will be able to negotiate operational adjustments and corrections to the program more efficiently and effectively with industry partners. The official request for comments makes comments regarding this change due July 22. The Big “I”, along with the Flood Insurance Producers Coalition and others in the industry, is reviewing the issue and will provide comments on the proposal. 

Additional program changes outlined by FEMA include a redesigned appeals process for policyholders who are not satisfied with the amount they received for their initial flood claim, as well as implementation of a FEMA litigation oversight team to help rein in the legal costs associated with flood litigation.

The Big “I” continues working with FEMA and WYO carriers on the implementation of these changes and will provide comments on the rulemaking before the deadline.

Jen McPhillips is Big “I” assistant vice president of federal government affairs.