FOR IMMEDIATE RELEASE

NAIC Urges Prompt Action on NFIP Reauthorization
Association also supports increased private sector involvement in flood insurance

WASHINGTON (July 25, 2017) — The National Association of Insurance Commissioners (NAIC) today reiterated that Congress should immediately reauthorize the National Flood Insurance Program (NFIP) prior to expiration on Sept. 30. Reauthorization would help avoid short-term extensions and program lapses that create uncertainty in the insurance, housing and lending markets.

The NAIC also supports the Flood Insurance Market Parity and Modernization Act and facilitating the growth of the state-regulated private flood market.

"It is important to maintain a stable program to provide certainty for policyholders while also encouraging greater growth in the private flood insurance market as a complement to the NFIP," said Ted Nickel, NAIC President and Wisconsin Insurance Commissioner. "State insurance regulators support this legislation because it provides consumers with more options for coverage which could lead to more affordable prices."

In recognition of the growing private flood market, the NAIC has developed a requirement for insurers to include a line item in their annual financial statements highlighting their private flood insurance activity. This data will provide state insurance regulators with an overview of the size of the private flood insurance market and insights into the market as it grows.

"The NFIP plays a critical role in providing coverage and any delay or lapse in the program will hurt consumers," NAIC CEO Mike Consedine said. "The NAIC stands ready to work with Congress to support a long-term reauthorization."

About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.

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