Flood Insurance Market Parity and Modernization Act Will Encourage the Development of a Private Flood Insurance Marketplace
WASHINGTON, D.C. — SmarterSafer.org — a national coalition of taxpayer advocates, environmental groups, insurance interests, housing organizations and mitigation advocates — today applauded U.S. Reps. Dennis Ross (R-FL) and Kathy Castor (D-FL) for re-introducing the Flood Insurance Market Parity and Modernization Act. The bill unanimously passed the House of Representatives last year with a 419-0 vote, and would help open the flood insurance marketplace to private insurers by easing regulations and allowing private insurance to fulfill mandatory purchase requirements.
In a statement, SmarterSafer.org said, “This bipartisan bill is an integral part of an ongoing effort to reform the National Flood Insurance Program — which is up for reauthorization in September but is almost $25 billion in debt. Fostering a more robust marketplace for private insurers will not only provide consumers with more options for purchasing flood insurance, but will help drive down prices across the board. We thank Representatives Ross and Castor for re-introducing this important legislation, and look forward to working with lawmakers from both sides of the aisle to reform the program this year so that it better protects lives, property and taxpayer dollars.”
The Flood Insurance Market Parity and Modernization Act would clarify federal rules to allow private companies into the flood insurance market. Specifically, the bill would:
- Remove regulation that make it difficult for private companies to enter the flood insurance market.
- Give states more flexibility to individually regulate private flood insurance as they see fit.
- Ensure that policyholders will not lose their flood insurance subsidies if they switch to a private insurer and then decide to switch back to the NFIP.
SmarterSafer released a series of recommendations to reform the NFIP, which include the efforts laid out in the Flood Insurance Market Parity and Modernization Act. A complete set of SmarterSafer’s policy recommendations are available here.
SmarterSafer.org is a national coalition that is made up of a diverse chorus of voices united in favor of environmentally responsible, fiscally sound approaches to natural catastrophe policy that promote public safety. The coalition believes that the Federal government has a role in encouraging and helping homeowners to undertake mitigation efforts to safeguard their homes against natural disasters. At the same time, the coalition opposes measures that put people’s lives at risk at the expense of taxpayers. Measures such as subsidizing artificially low rates for homeowners’ insurance policies help to encourage construction in environmentally sensitive and unsafe areas. The coalition is working to ensure that Congress does not incentivize people to live in harm’s way in places prone to hurricanes and floods.