Today, the American Bankers Insurance Association (ABIA) and the American Bankers Association (ABA) sent a letter to the House Financial Services Committee (HFSC) expressing support for H.R. 2901, the Flood Insurance Market Parity and Modernization Act (in the form of the substitute being offered by bill sponsor, Representative Dennis Ross). ABIA and ABA have long supported both legislative and regulatory efforts to ensure that private flood insurance policies are more readily available as an alternative to the National Flood Insurance Program (NFIP).
Providing consumers with private sector alternatives to the NFIP and driving down flood insurance prices through greater competition is a logical way to enhance protections for consumers against flood damages in the mortgage markets; it is also a significant contribution to the goals of ensuring more borrowers are covered by flood insurance and returning the NFIP to more robust fiscal health.
The substitute amendment expected to be offered by Rep. Ross represents the ongoing efforts to improve the NFIP, and notably includes changes requested by Ranking Member Maxine Waters. The bipartisan result will improve consumers’ access to flood insurance, be it from the NFIP or from a private provider. We urge the Committee to support this effort.
Read the letter.