As Congress works under imminent deadline to deal with thefuture of the critical National Flood Insurance Program (NFIP), itis getting conflicting advice as to how it should move to shore upthe program, with the Write-Your-Own (WYO) program gettingparticular attention.

At a Senate Banking Committee hearing on June 23, Sen. TimJohnson, D-S.D., chairman of the panel, and other committeemembers, were told by insurance officials in submitted testimonythat reauthorization of the program is essential.

However, several of those who testified at the hearing calledfor major changes, with one person saying the system is “broken,”while a consumer representative said the current framework is“unworkable.”

In opening comments, Johnson sought to reassure the industry andconsumers that Congress will work to sustain the program.

He noted, “Over the past year, we have also had severaldisruptive lapses in the NFIP.”

“I hope we can provide greater certainty to the program througha long-term extension with much-needed reforms,” Johnson said.

Adam Kolton, executive director of the National WildlifeFederation, representing SmarterSafer.org, said recent naturaldisasters underscore the need for NFIP reform “that leads to lessdevelopment and redevelopment in high-risk, sensitive areas, betterland-use planning, and significant savings for U.S. taxpayers.”

He urged the banking panel to pass a “strong, comprehensivereform bill that improves flood-risk mapping, ensures risk-basedrates, and incentivizes mitigation by individuals andcommunities.”

Travis Plunkett, legislative director of the Consumer Federationof America, said the insurance component of the NFIP has “provenunworkable,” citing political pressure that has keptflood-insurance rates in many areas below the real cost ofproviding coverage.

“This has led to chronic taxpayer subsidies now totaling $18billion,” Plunkett said.

“Much of this subsidy has led to risky coastal development,often by affluent builders and homeowners,” he said.

He also charged that the Federal Emergency Management Agency hasfailed to fix the costly WYO program.

He said this allows private insurers that assume no flood risk“to reap excessive fees for servicing flood policies, especially attimes of severe flooding.”

He said the WYO program “eats up one-third to two-thirds of theinsufficient premium dollars and exposes taxpayers to unnecessarycosts.”