Senate NFIP Hearing Kicks Off Reauthorization Process
On May 18, the U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing on the reauthorization of the National Flood Insurance Program (NFIP). PIA submitted testimony in which we urged the Committee to pass a long-term reauthorization and highlighted several specific reforms we’re pursuing this year.
The NFIP’s most recent five-year reauthorization expired on September 30, 2017. Since 2017, the NFIP has been subject to a total of 16 extensions of varying lengths, and some of the shortest extensions resulted in three brief NFIP lapses within a three-week period in early 2018. The NFIP has not been reauthorized for longer than its current one-year extension since its last five-year extension was passed in 2012. Its current authority will expire on September 30, 2021. This relatively early attention to the NFIP by the Senate Banking Committee is a positive sign that this Congress may try to pass a long-term reauthorization before the NFIP’s next expiration later this year.
Unfortunately, during the hearing, the commission structure of independent NFIP agents was inaccurately characterized as 30 percent of the total premium paid. This misstatement was one of several. PIA submitted supplemental testimony and issued a press release to correct the record.