PIA Looks Out for Consumers, Agents by Opposing Flood Insurance Legislative Package
As legislation to reauthorize the National Flood Insurance Program (NFIP) starts to move in
One of the proposals under consideration to address the NFIP's
"A cut to the reimbursement rate for Write Your Own insurance companies would likely trickle down to independent agents who sell this very complicated and vital line of insurance," said
In congressional hearings on flood insurance, many members have made it clear that the NFIP needs more, not fewer, policies in force to fiscally strengthen it. Cutting the expense allowance will have the opposite effect, as independent agents will stop selling flood insurance through the NFIP altogether if incentives to do so are made insufficient.
"One of the goals of reforming the NFIP is to increase sales of policies, especially preferred risk policies, to put the program on a firmer financial footing," Gentile said. "Reducing agent compensation undermines that goal by applying a disincentive to increasing sales. It could lead to an exodus of qualified independent agents from the flood program, similar to the one that occurred from the Affordable Care Act (ACA) when agent commissions were cut."
PIA will continue its steadfast defense of its member agents' interests by opposing any cut in the WYO reimbursement rate and by advocating that protection for agent compensation be included as specific language in any NFIP renewal legislation.
"Homeowners and business owners alike turn to their independent insurance agents for help in protecting their property from losses due to flooding. That's why PIA will oppose this legislative package that lowers the WYO reimbursement rate without protections for agents," Gentile said.
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