WASHINGTON, D.C. (PRWEB) September 13, 2016
Tom Santos, Vice President for Federal Affairs for the American Insurance Association (AIA) issued the following statement in advance of today’s Senate Banking Committee hearing entitled: The National Flood Insurance Program: Reviewing the Recommendations of the Technical Mapping Advisory Council’s 2015 Annual Report. AIA supports a long-term reauthorization of the NFIP using the principles of transparency, simplicity and certainty to guide the debate regarding reforms.
Mr. Santos’ statement follows:
“AIA welcomes today’s hearing and commends the Senate Banking Committee for taking a proactive role in examining the National Flood Insurance Program (NFIP) and the importance of accurate and up-to-date flood mapping.
A long-term reauthorization of the NFIP is a key factor in maintaining market stability as we explore ways to reform the program and expand private sector insurance participation and offerings. Having accurate mapping and data is essential to assessing and mitigating the risks.
Accurate maps help to ensure that the NFIP, private insurers, communities, and policyholders understand their flood risk and in-turn will allow for better insurance pricing, improved land use planning and the development of mitigation strategies.
As we consider NFIP reauthorization, one immediate step that Congress could take to incentivize private flood coverage would be to approve the Flood Insurance Market Parity and Modernization Act (FIPMA). This would allow private flood policies to meet the mandatory purchase requirement of the National Flood Insurance Program (NFIP). The Flood Insurance Market Parity and Modernization Act (S. 1679), introduced by Senators Heller and Tester, will provide consumers choice and is an important step toward the development of a private flood insurance market as a compliment to the NFIP.”