NFIP challenges & reform options from the American Academy of Actuaries

In this aerial photo over Hammond, La., flooded homes are seen off of LA-1064 after heavy rains inundated the region, Saturday, Aug. 13, 2016. (AP Photo/Max Becherer)

As Congress weighs reauthorization of the National Flood Insurance Program (NFIP), it has multiple options for addressing the program’s challenges and should take into account specific insurance market, technological and other developments, according to a report by the American Academy of Actuaries.

Authored by the Academy’s Flood Insurance Work Group, the public policy report “National Flood Insurance Program: Challenges and Solutions” describes premium setting and program financing options for addressing the NFIP’s debt and future obligations, including both public and private financing mechanisms, and other possible reforms.