NAIC Hosts Flood Insurance Event

DENVER, April 10 -- The National Association of Insurance Commissioners issued the following news release:

More than 280 regulators, consumer representatives and industry stakeholders discussed flood insurance at a forum coordinated by the Center for Insurance Policy and Research (CIPR). The event, The Future of Flood Insurance, was held in conjunction with the National Association of Insurance Commissioners' (NAIC) Spring 2017 National Meeting. Mississippi Insurance Commissioner Mike Chaney hosted the event, which examined the National Flood Insurance Program (NFIP) and the market's state.

"State insurance regulators are committed to finding solutions to protect consumers from flooding disasters," said Chaney. "While the NFIP provides the majority of flood insurance, the risk for flooding extends well beyond NFIP-designated flood zones since only about 50 percent of properties in these areas have flood insurance coverage. As state regulators, our ultimate goal is to offer consumers alternate choices to the NFIP."

The event included a panel discussion on the roles of the private and public sectors in reforming flood insurance. Other topics covered included: reauthorization considerations and proposals to modify NFIP; affordability considerations and impact of legislation; state of the private flood insurance market; proposals to encourage private-carrier interest in flood and advances in modeling capability of flood.

The CIPR also released a study, Flood Risk and Insurance, which examines the rising flood risk in the country and the need to overhaul the NFIP while encouraging greater growth in the private flood insurance market. To provide a stable environment and reduce uncertainty in the flood insurance market, state insurance regulators support a long-term reauthorization of the NFIP and further development of the private market as a comprehensive approach to address the country's flood risk.

The study brings together thought leaders and researchers in the fields of flood risk and insurance, state insurance regulators, insurance industry executives as well as consumer advocates to stimulate debate toward advancing solutions to address the risk of flood and support a vibrant flood insurance market.

CIPR's mission is to serve lawmakers, regulatory agencies, international regulatory agencies and insurance consumers by enhancing intergovernmental cooperation and awareness, improving consumer protection and promoting legitimate marketplace competition.