Reform of the $1.2 Trillion U.S. National Flood Insurance Program
The bill contains several important modifications in the operation of the program, notably a much welcome move from subsidized rates to risk-based premiums and a desire to evaluate different alternative options to bring the capacity of the private sector more effectively. The bill requests a series of important studies to be completed in the coming months.
Over the past 5 years our team at the Wharton Risk Center has been leading a national research effort on the future of the flood insurance program, along with several other key stakeholders and partners. We look forward to playing an active role in the near future on these analyses; knowledge for action.
If you are interested in the topic you might want to read Dr. Michel-Kerjan’s work on the topic written for a non-specialist audience.
The new Reform Bill integrates several of his proposals: