Proposed changes to National Flood Insurance Program welcomed

SmarterSafer, a national coalition of taxpayer advocates, environmental groups, insurance interests, housing organizations and mitigation advocates, has welcomed proposed changes to the National Flood Insurance Program (NFIP), which is up for reauthorization next year.

Rep. Blaine Luetkemeyer’s (R-Missouri) has released principles to reform the NFIP, which SmarterSafer said will help promote private sector participation and competition.

“The nation’s disaster policies and flood programme are in need of major reform so that they better protect lives, property and taxpayers who have for too long backstopped the current flood program, which is now over $23 billion in debt to US taxpayers.” the body said.

“The principles released by Rep. Luetkemeyer to reauthorize and reform the broken NFIP are welcome steps towards making the program more sustainable, while promoting private sector competition. Private sector competition in the flood insurance marketplace will give consumers access to better coverage and lower rates.

“In addition to private sector competition, Rep. Luetkemeyer’s principles recognize that important structural reforms are needed to ensure the NFIP is financially secure and available to help Americans rebuild after future disasters. This includes better mapping and risk analysis, rate transparency, rates that reflect real risk, and additional and more flexible mitigation assistance. It also recognizes the need to utilize reinsurance and capital market alternatives to protect the NFIP from large losses by diversifying risk across multiple markets.

“The NFIP must be reauthorized by September, and SmarterSafer.org looks forward to working with the House and Senate to implement these crucial reforms to ensure communities are better prepared for a future of more frequent and severe floods.”