New Government Report: Flood Insurance

April 26, 2011 at 8:10 am Leave a comment

Flood Insurance: Public Policy Goals Provide a Framework for Reform: Congressional Testimony

by Orice Williams Brown
Paperback, 19 pages, 2011, $20.00
ISBN: 1437982948

The National Flood Insurance Program (NFIP) had to borrow from the U.S. Treasury to cover losses from the 2005 hurricanes. The outstanding debt is $17.8 billion as of March 2011. This sizable debt, plus operational and management challenges at FEMA, which administers NFIP, have kept the program on the high-risk list. NFIP’s need to borrow to cover claims in years of catastrophic flooding has raised concerns about the program’s long-term financial solvency. This testimony: 1) discusses ways to place NFIP on a sounder financial footing in light of public policy goals for federal involvement in natural catastrophe insurance; and 2) highlights operational and management challenges at FEMA that affect the program.

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