WASHINGTON — Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America (PCI) issued the following statement, following the vote on H.R. 2874, the 21st Century Flood Reform Act, thanking the House for voting to reauthorize the National Flood Insurance Program (NFIP).
“Nearly five million American consumers rely on the NFIP to protect their homes, properties, and businesses,” said Wienecke. “A long-term reauthorization is needed to provide consumers and markets with reliability and stability when it comes to flood insurance coverage.
“The bill that passed the House today includes a number of important reforms that streamline and reduce unnecessary burdens in the program. The bill also includes PCI supported language to reduce costs and increase options for consumers, such as the bipartisan Ross-Castor language,” continued Wienecke. “Too few homeowners and businesses have flood protection and this bill would expand consumers’ flood options.
“The bill also makes meaningful structural reforms that improve the solvency of the program,” said Wienecke.
“PCI, however, is concerned that the bill would make cuts to the Write Your Own companies that partner with FEMA to administer the NFIP,” said Wienecke. The WYO companies are servicing 120,000 flood claims resulting from Hurricanes Harvey, Irma, Maria, and Nate. Since 2004, the number of private Write Your Own insurers who voluntarily service the program has declined from 107 to fewer than 70, over a 35 percent drop.
“PCI will continue to work with Congress toward the goal of passing a long-term reauthorization of the NFIP, as the program is still set to expire on December 8,” concluded Wienecke.