An official with the Federal Emergency Management Agency (FEMA) told insurance commissioners that Congress’ failure at long-term renewal of the National Flood Insurance Program (NFIP) could jeopardize the participation of carriers in the program. During an August 16 meeting of the Catastrophe Insurance Working Group at the NAIC meetings in Seattle, Edward Connor, acting Federal Insurance and Mitigation administrator, said with the September 30 deadline looming, he worries about what effect that will have on private company participation in the program.

“That is when 90 companies say if they want to participate in the plan,” he said, and he does not know how the uncertainty surrounding the plan will affect their involvement.  “It is a significant concern to us.”  In July, the current program was given an extension to Sept. 30 as Congress works on a five-year reauthorization package. The House has passed a five-year extension, but the Senate has taken no action.  Connor pointed out that “September 30 is coming up real fast and we do not want to wait until the last minute.”

Congress’ Failure Endangers Carrier NFIP Participation (National Underwriter 8/17/10)

August 18, 2010