September 13, 2016

Shelby Reacts to Comments by Head of NFIP in Senate Banking Hearing

WASHINGTON D.C. – Tuesday, September 13, 2016 – U.S. Senator Richard Shelby (R-Ala.), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today released the following statement after a full committee hearing that set the stage for reforming the National Flood Insurance Program (NFIP):

“For years I have worked to reform the flood insurance program ‎to more accurately reflect the risk to homeowners, which in turn results in actuarially sound flood insurance premiums.  During today's ‎hearing Mr. Roy Wright, the head of the National Flood Insurance Program, agreed.  In his opening statement, Mr. Wright stated, ‘We need to meet the transformations in flood hazard analysis with complimentary leaps forward in our actuarial and underwriting practices.  Simply, we need to set premiums that best reflect the risk.  We have got to move to structure specific flood frequencies and eventually we need to see the actuarial structure of the program fundamentally shift.’

“If we want to ensure the long-term viability of the NFIP without continuing to borrow from taxpayers, reform is essential.  I am hopeful that Mr. Wright's comments along with the recommendations of the Technical Mapping Advisory Council will spur the necessary reforms.”