Last week, the Senate Committee on Small Business and Entrepreneurship held a field hearing entitled, "How Flood Insurance Rate Increases and Flood Mapping Policy Changes Will Impact Small Businesses and Economic Growth" to discuss the impact of flood insurance rates on small businesses. Brad J. Kieserman, Deputy Associate Administrator for Federal Insurance and Roy Wright, Deputy Associate Administrator for Mitigation from FEMA testified.
Chairman Vitter (R-LA) addressed FEMA's mishandling of the Biggert-Waters Act implementation and how it resulted in inaccurate rate
hikes that placed the viability of the entire National Flood Insurance Program (NFIP)
at risk and caused turmoil in the real estate market. "Going forward, we need to find a way to deal with the solvency of the NFIP in a responsible way, but - at the same time - does not do so solely on the back of policyholders. We need to examine how FEMA spends every dollar of premiums paid into the system", Vitter stated to witnesses.
Read full testimonies from Chairman Vitter and witnesses.