A draft of principles for reauthorization and reform for the National Flood Insurance Program (NFIP) are under consideration by the House Financial Services Housing and Insurance Subcommittee this week.
What comes of the principles will seek to guide debates over the reauthorization in Congress over the coming year. The legislation is necessary, one way or another, owing to the fact that current statutes of the NFIP are set to expire in September 2017.
“Flood insurance does and will continue to play a critical role in assisting homeowners, businesses and communities recover from the damages that flooding causes,” Tom Santos, vice president for federal affairs for the American Insurance Association (AIA), said.
The AIA, the leading property-casualty insurance trade organization in the country, has been in support of the long-term reauthorization of the NFIP, along with expanding its potential offerings among the private sector. As it represents approximately 325 insurers, it would stand to benefit greatly from any private expansion initiatives.
“The draft principles released today take constructive and positive steps towards both by providing market place stability, improving the NFIP’s fiscal position and fostering the development of private sector insurance options,” Santos said.