In the News Congressional legislation would halt, delay NFIP market reforms
Delaying what is already a slow process is a bad idea, Eli Lehrer, president of the R Street Institute, told SNL. R Street was part of a coalition that backed the NFIP reforms and included insurers such as Liberty Mutual Holding Co. Inc. andSwiss Reinsurance Co. Ltd.“Delaying implementation undermines the progress,” he said. Lehrer, who said he has worked with Palazzo’s office on flood issues, said the number of people affected by the Biggert-Waters increases is small.What is making more of an impact on homeowners, he said, are new Federal Emergency Management Agency maps that in some cases are putting homes in areas where flood insurance is required for the first time. FEMA maps and the aftermath of Sandy are leading some companies, including Chubb Corp., to reassess their underwriting practices in affected areas.Lehrer thinks more highly of Palazzo’s companion bill, which would increase funding for mitigation programs. It would provide for tax credits of up to $5,000 for costs associated with qualified flood-mitigation efforts. Insurance companies and others supporting mitigation point to research showing that every dollar of mitigation saves $4 in post-catastrophe spending.“It shows that he’s somebody who thinks seriously about the issue of floods,” Lehrer said.
