Private insurers forced out of flood insurance market
Roughly a fifth of all proprietors were paying subsidized rates that were in the grandfathered clause of the NFIP. As a result, they’ll see their rates go up over the next four years until they reach the appropriate acturiarial levels, explained R Street Institute senior fellow Ray Lehmann.
“The act allows the program to build reserves so they won’t have to go back to taxpayers to cover the losses,” Lehmann said.
He added, “[The act] doesn’t fix the problem, but it does help the problem from getting worse in the future. We should work toward bringing more of this coverage into the private market as soon as possible and put forth new policy initiatives.”