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."