NFIP status and uncertainty
After a brief overnight lapse last week, the National Flood Insurance Program (NFIP) has been extended to Friday, March 23 as part of the continuing resolution passed by Congress to fund the federal government. This is the fifth time the program has been granted a short-term extension since it originally was set to expire on Sept. 30, 2017.
REAUTHORIZATION AND REFORM EFFORTS
While the short-term extensions have been buying lawmakers time, your federal government affairs team at the Big “I” has been a leader in insurance industry efforts to lobby in support of a long-term reauthorization as well as program reforms.
In November 2017, the U.S. House of Representatives passed H.R. 2874, the 21st Century Flood Reform Act. While the legislation includes a much-needed five-year reauthorization of the NFIP, it also includes language that would reduce the Write Your Own (WYO) reimbursement rate to administer the program. The proposed three-percentage-point cut of the WYO reimbursement rate undoubtedly would lead to a reduction in agent commissions as carriers seek to reduce costs. The Senate has yet to vote on the legislation.
As there are less than six weeks until the next deadline, stay tuned to Agent Headlines for more updates on the NFIP’s status and continued lobbying efforts.