The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a second hearing last week on the reauthorization of the National Flood Insurance Program (NFIP).
The current authorization for the NFIP expires Sept. 30 and members of Congress are investigating the program’s soundness and affordability.
“Flooding is the most common and costly natural disaster facing our constituents. With a growing population and a changing climate, our entire nation will continue to grapple with this issue in the years ahead,”
Sen. Sherrod Brown (D-OH), ranking member of the committee, said in his opening remarks.
He said the NFIP seeks to combat the effects of flooding through four components: flood insurance, floodplain management, floodplain mapping; and mitigation.
“Because these activities are intertwined, it will be important for us be aware of how policy changes in one area may affect others,” Brown added. “I look forward to continuing to work with Chairman [Mike] Crapo (R-ID) and the members of the committee to strengthen the NFIP and the country’s comprehensive approach to mitigating flood risk through a timely reauthorization.”
The American Insurance Association (AIA) commended the committee for holding the hearing.
Tom Santos, AIA’s vice president for federal affairs, said AIA is committed to securing a timely, long-term reauthorization of the NFIP that also removes regulatory barriers to the expansion of private sector flood insurance offerings.
“As such, avoiding a lapse in the program and encouraging the development of a private flood insurance market as a complement to the NFIP is crucial to providing stability for policyholders and the broader marketplace. Failure to do so will only create further instability, hurting the NFIP in the process,” Santos said.