The flood insurance debate returns. Here’s what to expect
The bipartisan measure has the backing of the Pew Charitable Trusts, the National Association of Mutual Insurance Companies, the Natural Resources Defense Council and the R Street Institute.
The bill would also require the Government Accountability Office to study the feasibility and implications of lowering all subsidies to a point that “puts the NFIP on a path to stronger financial footing.”
Jerry Theodorou, director of the finance, insurance and trade program at the R Street Institute, said subsidies mask the real costs of building and living in flood-prone areas and that the Peters-Barr bill would ensure that policyholders aren’t “undercharged.”
Theodorou said the Waters bill instead would kick the can down the road, and he criticized the measure for seeking to cancel the program’s historic $20.5 billion debt.
“It wipes away the underperformance and the poor management of this program by just writing off the debt,” he said.