As the NFIP’s Sept. 30 expiration date looms, Congress is beginning to focus more on the program’s reauthorization and reform.

Earlier today, Roy Wright, deputy associate administrator for the Federal Insurance and Mitigation Administration—the entity which oversees the NFIP—testified before the U.S. House of Representatives Financial Services Committee, Housing and Insurance Subcommittee.

In addition to providing an overview of NFIP history, Wright’s testimony focused on the importance of: a stable multiyear reauthorization for the NFIP; increasing the number of people who have flood insurance coverage, whether through the NFIP or the private market, which needs more time to develop; more flexibility in legislation regarding NFIP product offerings; and a better financial stability framework for the program.

Wright is also scheduled to testify before the U.S. Senate Banking Committee next week, and more flood insurance hearings may follow. Additionally, the House Financial Services Committee is holding listening sessions for members to gather and discuss ideas on NFIP reform.

The Big “I” expects many members of Congress to seek considerable reforms to the NFIP, including a larger role for the private market. The association believes more consumers should obtain flood insurance and also supports the gradual growth of the private market as a complement to the NFIP. However, absent a viable private market for flood insurance, the Big “I” will continue advocating for a long-term extension of the NFIP.

In a related development, on Wednesday, Sens. Dean Heller (R-Nevada) and Jon Tester (D-Montana) and Reps. Dennis Ross (R-Florida) and Kathy Castor (D-Florida) introduced S. 563 and H.R. 1422, the “Flood Insurance Market Parity and Modernization Act of 2017.” The legislation, which passed the House by a vote of 419-0 last year, clarifies that a private flood policy can satisfy the mandatory purchase requirement for flood insurance and gives state insurance regulators the authority to determine what constitutes acceptable private market flood insurance. 

The legislation allows for private flood insurance to satisfy NFIP continuous coverage requirements, which means policyholders can obtain NFIP coverage without losing their grandfathered status if they leave the program, obtain coverage in the private market and later find that this new coverage no longer meets their needs. The Big “I” supports this legislation.

The Big “I” will continue educating Congress on the essential role agents play in the delivery of flood insurance as the program’s expiration approaches. Flood insurance and NFIP reauthorization will be a major topic at the Big “I” Legislative Conference, to take place May 3-5 in Washington, D.C.

Jennifer Webb is Big “I” federal government affairs counsel.