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Private Flood Insurance: One Step Closer to Reality

Posted By Administration, Wednesday, May 4, 2016

The U.S. House has pass the Flood Insurance Market Parity and Modernization Act. If you’re deeper into the subject it’s H.R. 2901. It passed the House 419-0.


So you might say it has bipartisan support. Insurers and insurance organizations like PIA National hope it finds similarly easy sailing in the Senate.


The law requires private flood insurance to be treated the same as federal flood insurance by banks and mortgage lenders.


Jon Gentile is PIA National Vice President of Government Regulations. He said passage of the legislation is encouraging. “This legislation seeks to encourage the development of a private flood insurance market, with strong consumer protections being overseen by state insurance regulators. We thank the bill's sponsors Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL) for their leadership on this important issue.”


Basically, Gentile said, “It ensures that private flood insurance can be used to satisfy the National Flood Insurance Program's (NFIP's) continuous coverage requirement, an essential aspect of ensuring policyholders are not penalized for moving from one policy to another.”


The PIA doesn’t want to see an immediate privatization of the National Flood Insurance Program (NFIP). Instead, the association is looking for — as noted in its news release— “sensible solutions for encouraging the growth of the private flood insurance market with measures like H.R. 2901. In addition, PIA supports the long-term reauthorization of the NFIP when it comes up for renewal in 2017. Encouraging the private flood insurance market is a good first step that we hope to see accomplished this year, understanding that, at present and in the near future, the private market is not a realistic replacement for the NFIP.”


Insurance Information Institute (I.I.I.) President Dr. Robert Hartwig also likes the positive vote. The Flood Insurance Market Parity and Modernization Act will be a great benefit to consumers so that they have more choices when it comes to flood insurance. Now insurers can compete with the NFIP on a more-equal footing, increasing consumer options while at the same time protecting taxpayers.”


Tom Santos of the American Insurance Association agrees. Enactment of this bill will give consumers more choices when it comes to Flood insurance. It will also help encourage development of a private Flood insurance market to complement the NFIP. The overwhelming bipartisan vote by the House creates additional momentum as the bill moves to the Senate.”


Source links: PropertyCasualty360.com, Insurance Business America, Carrier Management

Tags:  Flood  Flood Insurance  Insurance Content  Insurance Industry  Insurance News  Private Flood Insurance: One Step Closer to Realit  Weekly Industry News 

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