Insurers Applaud NAIC Recommendations on Flood Insurance

WASHINGTON- Don Griffin, vice president, personal lines at the Property Casualty Insurers Association (PCI) issued the following statement applauding the National Association of Insurance Commissioners (NAIC) for examining the flood insurance marketplace and issuing a list of recommendations for reforming and reauthorizing the National Flood Insurance Program (NFIP) for the benefit of consumers.  State regulators have put forth three important objectives to consider in the NFIP debate: support long- term reauthorization; encourage greater growth in the private market; and encourage mitigation planning, legislation and support to reduce losses.

The principles will be discussed at the August 28 NAIC meeting.

“PCI applauds the NAIC and state regulators for continuing the conversation about flood insurance and understanding the importance of a long-term NFIP reauthorization as 5.1 million consumers and businesses rely on the program for protection from the devastation that floods can bring.

“The recommendations encourage greater growth in the private flood insurance market as a complement to the NFIP to help provide consumers with more choices. Additionally, they encourage support for mitigation planning, including legislative efforts such as the Disaster Savings Accounts Act (H.R. 2230) to allow individuals to set aside funds in a tax-preferred savings account for disaster mitigation and recovery expenses to help reduce losses.

“Developing a strong bipartisan consensus for stable long-term reform in advance of the program’s September 2017 expiration is necessary to avoid lapses and short-term extensions in order to protect families and businesses that depend on flood insurance.”

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PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $183 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 32 percent of the commercial property and liability market and 34 percent of the private workers compensation market.

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PCI applauds the NAIC and state regulators for continuing the conversation about flood insurance and understanding the importance of a long-term NFIP reauthorization as 5.1 million consumers and businesses rely on the program for protection from the devastation that floods can bring
Don Griffin