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Member, Beacon International Group, Ltd.
WASHINGTON—The House Financial Services Committee gave its unanimous approval Friday to a measure that would extend the National Flood Insurance Program for five years.
Under the bipartisan Flood Insurance Reform Act of 2011, the NFIP would remain in place until Sept. 30, 2016, rather than expire on Sept. 30 of this year, as slated.
Premiums based on risks
H.R. 1309 would phase in risk-based premiums and reduce subsidies for certain properties such as high-risk buildings subject to repeat claims. The measure also deals with risk mapping standards and mitigation assistance.
The bill will go to the full House.
It authorizes the Federal Emergency Management Agency to secure private reinsurance and directs FEMA to report on proposals from the private market to assume risk within the program.
“This legislation will give the program long-term stability, help draw better flood maps and initiate actuarially sound pricing,” the bill’s chief sponsor—Rep. Judy Biggert, R-Ill.,—said in a statement.
There have been several short-term extensions of the NFIP in the past several years, the most recent occurring in September.
WASHINGTON—The National Flood Insurance Program should be partially or entirely privatized, the heads of two reinsurance groups have told a government-sponsored forum on the NFIP.