Washington, D.C. – (RealEstateRama) — U.S. Representative Ed Royce (R-Calif.) made remarks on the floor of the House of Representatives in support of H.R. 2901, the Flood Insurance Market Parity and Modernization Act:
“Since its inception in 1968, the National Flood Insurance Program was never intended to cover policies the private sector was able and willing to underwrite.
“In fact, one stated goal for the Program was that, quote, ‘the federal government would create an opportunity for private industry to obtain… experience in operating a flood insurance program… and that sometime in the future, the program could become an all-private program,’ end quote.
“Nearly 50 years have passed and to no one’s surprise, private sector flood insurance risk modeling and analytics have dramatically improved.
“While this House may not be ready to take-up complete privatization, it is time to provide a role for the private market to underwrite primary flood insurance policies.
“Passage of this bipartisan bill means more consumer choice, more market competition, and it means more product innovation. Consumers for the first time will be able to shop for a flood policy that fits their particular needs.
“This bill also has the added benefit of decreasing the aggregate flood insurance exposure to the federal government and decreasing the potential for a future taxpayer backed bailout,” said Rep. Royce.
The Flood Insurance Market Parity and Modernization Act clarifies a provision from the Biggert-Waters Flood Insurance Reform Act of 2012 allowing private flood policies to meet the mandatory purchase requirement of the National Flood Insurance Program (NFIP).
Watch Rep. Royce’s floor remarks here or by clicking the image below.
Saat Alety (202-225-4111)