On Tuesday, the Big “I” submitted a comment letter encouraging FEMA to simplify the NFIP and review policies on agent training.
Pursuant to an executive order issued by President Trump earlier this year, FEMA is in the process of updating outdated regulations and policies. Accordingly, the Big “I” suggested that FEMA review out-of-date and overly complex procedures regarding NFIP underwriting.
FEMA is currently working on a project to review NFIP underwriting. The Big “I” believes the NFIP should incorporate new technologies for collecting and analyzing data, as well as recent advances in actuarial science, into the program’s rating methodology. Risk rating for the NFIP is extremely complex and should be updated for the 21st century.
FEMA is also considering changes to agent training for selling and servicing NFIP policies. As such, the Big “I” suggested that FEMA consider updating and periodically reviewing guidelines, originally published in 2005, for agent flood insurance training. The program has undergone multiple legislative and regulatory changes in the last 12 years.
Finally, the Big “I” cautioned against making a one-size-fits-all requirement for agent training. Instead, the association recommended flexibility for training courses that are suitable for specific flood risk issues that vary geographically and focus on program changes that the NFIP undergoes in an appropriate and timely manner.
The NFIP is set to expire on Sept. 30. The Big “I” continues to advocate before Congress for a modernized NFIP.
Jennifer Webb is Big “I” federal government affairs counsel.
