NU Online News Service, April 24, 2:50 p.m. EDT
WASHINGTON—Insurance industry officials say a two-year National Flood Insurance Program extension, as proposed recently by the Federal Emergency Management Agency, is better than the current pattern of short-term extensions, but some associations say they would still rather see action on a five-year extension with program reforms.
In a comment today in reaction to the FEMA letter to Congress calling for a two-year extension, the Independent Insurance Agents and Brokers supported the FEMA proposal.
But officials of the National Association of Professional Insurance Agents joined the American Insurance Association and the National Association of Mutual Insurance Companies in voicing support for more certainty, a five-year extension.
The comments followed a brief conference call FEMA officials had with interested parties today, including representatives of the property and casualty insurance industry.
The FEMA briefing followed its message to Congress asking for support for a two-year extension. The letter was sent because yet another short-term extension of the program is scheduled to expire May 31.
The current program has been operating on extensions—with some breaks in the program—since Sept. 30, 2008.
Tuesday, Charles Symington, senior vice president of government affairs for the IIABA, says the IIABA supports FEMA's call for a multi-year extension of the NFIP.
In fact, Symington says, “this Thursday nearly 1,000 agents will be visiting their lawmakers on Capitol Hill urging them to either reach agreement on the Flood Insurance Reform and Modernization Act or to pass a clean and simple multi-year extension.”
Symington says, “This program is simply too important to the marketplace and consumers to be facing the threat of expiration every three to six months.”
Mike Becker, assistant vice president of federal affairs for the PIA, says that, “PIA continues to advocate that the Senate move a comprehensive flood insurance reform bill with a five-year reauthorization.”
However, avoiding another lapse by securing a multi-year extension becomes even more critical as the scheduled May 31 expiration of the flood insurance program draws closer, Becker said.
“If the Senate is unable to pass a five-year extension with the many needed reforms in the time remaining prior to May 31, PIA would support FEMA's request to extend the current program for two years,” Becker says. “Such a move could avert a serious disruption in the market and provide a measure of stability for the millions of Americans who rely on the continued availability of flood insurance coverage.”
Matt Gannon, NAMIC assistant vice president of federal affairs, says, “Ensuring that the NFIP is not allowed to lapse remains a top priority for NAMIC, and we appreciate the urgency with which FEMA and others are treating this issue.”
Gannon says that with just over a month before the May 31 expiration, it's up to Congress to act.
But, he adds, “We at NAMIC hope that lawmakers, particularly in the Senate, will take this opportunity to not just sustain the NFIP, but strengthen it by passing bipartisan reform legislation already approved by the Banking committee,” legislation which calls for a five-year extension of the program.
The AIA reiterated that point in a statement Monday.
The Senate bill has no name. The House last July passed by overwhelming vote, H.R. 1309, the “Flood Insurance Reform Act of 2011.”
The bill, sponsored by Rep. Judy Biggert, R-Ill, would, among other provisions, extend the NFIP until Sept. 30, 2016.
The Senate Banking Committee reported to the floor a similar bill in early September. Floor action has been pending since then.
Updated to clarify that industry associations will accept a two-year extension, but would rather see a five-year extension. The previous version of this story may have implied the industry sentiments were either/or.
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