NFIP likely needs increase in borrowing authority to cover Harvey claims
“That turned out to be a very good investment,” R.J. Lehmann, senior fellow for the conservative R Street Institute think tank in Washington, said of the reinsurance purchase during a conference call on Thursday. “They paid about $150 million for $1 billion for reinsurance and it looks like they’re going to tap all of it.”
“They are certainly going to need to do that,” he added of the borrowing authority increase. “The question is how much are they going to need from Congress.”
The NFIP is currently in debt to the tune of $24.6 billion — a number that could double due to the impact of Harvey and Irma, he said.
