Texas Congressman Calls for Quick Launch of Private Flood Insurance
A demand by a House Financial Services subcommittee chairman that bank regulators move quickly to facilitate sale of private flood insurance as an alternative to the National Flood Insurance Program is prompting a split in the insurance industry.
The letter by Rep. Randy Neugebauer, R-Texas, said that the provision’s intent “is to reaffirm and support pre-existing requirements that lenders accept comparable private flood insurance policies.”
Stephen Harty, president of National Flood Services in Kalispell, Mont., said in his letters to Senate negotiators dealing with the reauthorization legislation that privatization proposals for the NFIP be delayed until the full impact of these on the NFIP could be studied.
He also voiced concerns it would pull from the NFIP flood insurance customers in areas unlikely to flood, thereby raising the cost of NFIP coverage to the people who can least afford it.