One issue of concern to both agents and customers is the future of the National Flood Insurance Program (NFIP)—still a subject of debate in Congress.
A group of House members has introduced legislation aimed at privatizing the program—but an industry executive said that can't happen because there is no market.
"[Members of Congress] don't know what they don't know. They think if they privatize the program, a market will magically appear," declared Robert Rusbuldt, IIABA president and CEO, who moderated a panel of three insurance-industry CEOs and the president of the Insurance Information Institute on the last day of the conference.
Speaking with NU, Rusbuldt said that, philosophically, he supports privatization of as many government programs as possible, but this is not practical with NFIP.
He said NFIP reform is essential and some portions of it could be privatized, but federal involvement will have to continue.
Bob Hartwig, president of the I.I.I., said the program could be partially privatized through reinsurance.
But Greg Murphy, chairman, president and CEO of Selective Insurance Co. of America, doubts privatization will happen. "[Congress] does not have the stomach to make the program actuarially sound," he said, contending that once legislators see how much rates would be raised, Congress would understand that the average homeowner would find it unpalatable.
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