PIA Cautions Against Privatization of NFIP

PIA has confidence that the reforms adopted by Congress last summer will put the National Flood Insurance Program (NFIP) back on a firm footing. Rep. Jeb Hensarling (R-Texas), incoming chairman of the House Financial Services Committee, said during the debate that while people with flood policies need to be paid now, his committee will mark up a bill this year “to transition to a private innovative, competitive, sustainable flood-insurance market.” He acknowledged that some reforms were imposed through the NFIP reauthorization legislation enacted in July, but said that despite those reforms “Sandy has hit before many of these provisions could take effect.”

“PIA supports the NFIP and we remain confident that after years of work, the NFIP reform law that passed Congress last year will make the necessary changes to put this program back on a sound footing,” said PIA National assistant vice president of federal affairs Mike Becker. “We caution against proposals that would privatize the NFIP before the reforms are even implemented, and we look forward to conversations with the Chairman on his ideas to strengthen the program.”