Today, the House Financial Services Committee (HFSC) moved up their consideration of H.R. 2901, the “Flood Insurance Market Parity and Modernization Act,” and passed it by a unanimous vote of 53-0. The bill now moves on to the full House for consideration at a date to be determined.
The American Bankers Insurance Association (ABIA) and the American Bankers Association (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 bill offered by Representative 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.
View the bill.
The ABIA has a Flood Insurance Task Force that focuses on the examination of legislative and regulatory treatment of flood insurance policies issued by the NFIP and by insurers providing flood coverage as an excess or surplus line or on a lender placed basis. If you are interested in joining the working group, please contact Sarah Ferman.