WASHINGTON--One way to reduce the government subsidy for flood insurance would be to pass legislation requiring that bank mortgages on homes hit by a deluge be considered paid in full, according to proposals by two academics.
Another proposal made by Mark J. Browne, an actuarial science professor at University of Wisconsin School of Business, and Martin Halek, assistant professor at the University of Georgia Terry College of Business risk management and insurance department, would be to require all homeowners purchase flood insurance.
By putting the banks at risk, they suggested, lenders faced with the risk would price it into the interest rate charged for a mortgage.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
