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Thursday, March 9, 2017

HFSC Committee Holds Hearing on "Flood Insurance Reform: FEMA's Perspective"

Today, the House Financial Services Committee held a hearing addressing private flood insurance reform and the National Flood Insurance Program (NFIP) reauthorization. Testifying was Roy Wright, Deputy Associate Administrator, Federal Insurance and Mitigation Administration, at FEMA. Director Wright reiterated his support for a private flood marketplace and emphasized the importance of bringing transparency to the financial framework of the flood insurance program and the need to address barriers to meeting the needs of customers.

Representative Sean Duffy, Chairman of the Housing and Insurance Subcommittee, led the hearing and questioned Director Wright on the plan or ability for FEMA to pay back the NFIP debt and also requested official data on compliance rates for mandatory purchase requirements. Currently, the NFIP has about 5.1 million policies providing over $1.2 trillion in coverage in almost 22,000 communities in 56 jurisdictions. The NFIP has an outstanding debt of $24.6 billion borrowed from taxpayers, with $5.825 billion remaining of its total temporary $30.425 billion Treasury borrowing authority.

Read the full Committee memorandum.