Sens. Bob Menendez (D-NJ) and Bill Cassidy (R-LA) introduced bipartisan legislation that would reauthorize the National Flood Insurance Program (NFIP) for five years and make several changes to the program. The National Flood Insurance Program Reauthorization and Reform Act of 2023 has a House companion bill, which is sponsored by Reps. Frank Pallone (D-NJ) and Clay Higgins (R-LA).
The bill includes several provisions that could improve the program, including the creation of an agent advisory council with a designated seat for a PIA representative, increased funding for mitigation, the development of an affordability framework, and improvements to the claims process.
However, the bill also includes a provision that PIA has long viewed as unacceptable: a reduction in the Write-Your-Own (WYO) reimbursement rate from 29.9 to 22.46 percent. A cut to 22.46 percent could force the WYOs who remain in the program to drastically cut agent commissions to account for the lower reimbursement rate. The NFIP is currently set to expire on Sept. 30, 2023, unless Congress acts to reauthorize it. PIA will continue to urge Congress to pass a long-term NFIP reauthorization bill that includes essential reforms and does not devalue the irreplaceable expertise of independent agents.
