Statement by National Association of Professional Insurance Agents on Senate Legislation to Reauthorize National Flood Insurance Program

WASHINGTON, July 24 -- The National Association of Professional Insurance Agents issued the following news release:

The National Association of Professional Insurance Agents appreciates the work done by Senate Banking, Housing and Urban Affairs Committee Chairman Michael Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) on their bill, the "National Flood Insurance Program Reauthorization Act of 2017" (S. 1571), which is currently before the committee. This initial legislation is an auspicious start in light of the fact that it provides a long-term reauthorization of the National Flood Insurance Program and has left untouched the Write Your Own (WYO) reimbursement rate for insurers, maintaining agent commissions.

PIA National strongly opposes the House NFIP reauthorization package that passed out of the Financial Services Committee because it arbitrarily cuts the WYO rate, which is used by carriers to pay administrative expenses as well as agent commissions, among other things. Most WYOs have acknowledged that, for them to remain in the program, they will be forced to pass any cut to the WYO rate on to agents in the form of cuts to agent commissions. PIA National will remain opposed to any legislation that cuts the WYO rate without robust protections for agents.

"We applaud this first step by Chairman Crapo and Ranking Member Brown to reauthorize this critical program used to protect against floods," said Jon Gentile, vice president of government relations for PIA National. "PIA will now continue to work with members of the committee to supplement the bill by supporting efforts to expand the private flood insurance market, enhance mitigation programs and improve the claims process for policyholders, and include provisions meant to recognize the essential role independent insurance agents play in delivering this critical and often misunderstood program to consumers."