Big ‘I’ Submits Testimony for NFIP Reauthorization Hearing
By: Wyatt Stewart
On Wednesday, the U.S. House Committee on Financial Services Subcommittee on Housing, Community Development and Insurance held a hearing entitled, “Reauthorization and Reform of the National Flood Insurance Program.” The hearing covered several important topics, including the role of the Write-Your-Own (WYO) program, affordability issues, mapping and mitigation, the role of private flood insurance, and Risk Rating 2.0.
The Big “I” submitted written testimony that underscored the importance of finally enacting a long-term reauthorization of the NFIP after numerous short-term reauthorizations. Additionally, the Big “I” emphasized the importance of increasing take-up rates for flood insurance—whether it be through the NFIP or the private market.
The Big “I” also advocated for clarifying that private flood insurance can satisfy NFIP continuous coverage requirements, which means that if a consumer leaves the NFIP for the private market and conditions change, the consumer can return to the NFIP without penalty.
The Big “I” statement also advocated for allowing refunds for unearned premiums for the mid-term cancelation of NFIP policies if a consumer elects to purchase a policy from the private flood insurance market.
Finally, the Big “I” testimony touched on Risk Rating 2.0 and noted that the Big “I” believes that Risk Rating 2.0, if properly implemented, has the potential to improve the NFIP experience for consumers but the rollout of the program will be critical in determining its success.
Additionally, the Big “I” noted that to make the rollout successful, FEMA must work hand in hand with WYO carriers and agents, noting that FEMA must do more to make the rating process more transparent for both agents and consumers.
As Congress continues discussing reauthorizing the NFIP, the Big “I” will continue to provide members with updates in the weekly News & Views e-newsletter.
Wyatt Stewart is Big “I” assistant vice president of federal government affairs.
