Dr. Robert Hartwig, III

Dr. Robert Hartwig, President of the insurance Information Institute (III) says the National Flood Insurance Program (NFIP) is 24 billion in debt, and “no hope of getting out of debt until such time that it charges premiums that more closely approximate the risk it is assuming.”

The Biggert’s-Waters Act of 2012 allowed for rate increases, but after negative public reaction, rates were rolled back. In 2015, more modest increases and surcharges were rolled out. These rate changes will help the solvency of the NFIP in the long run, and could attract private insurers to the market. Dr. Hartwig sees the NFIP as more a “form of entitlement” than an insurance company, benefiting mostly coastal dwellers.

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