NU Online News Service, April 24, 2:50 p.m.EDT

WASHINGTON—Insurance industry officials say a two-yearNational Flood Insurance Program extension, as proposed recently bythe Federal Emergency Management Agency, is better than the currentpattern of short-term extensions, but some associations say theywould still rather see action on a five-year extension with programreforms.

In a comment today in reaction to the FEMA letter to Congresscalling for a two-year extension, the Independent Insurance Agentsand Brokers supported the FEMA proposal.

But officials of the National Association of ProfessionalInsurance Agents joined the American Insurance Association and theNational Association of Mutual Insurance Companies in voicingsupport for more certainty, a five-year extension.

The comments followed a brief conference call FEMA officials hadwith interested parties today, including representatives of theproperty and casualty insurance industry.

The FEMA briefing followed its message to Congress asking forsupport for a two-year extension. The letter was sent because yetanother short-term extension of the program is scheduled to expireMay 31.

The current program has been operating on extensions—with somebreaks in the program—since Sept. 30, 2008.

Tuesday, Charles Symington, senior vice president of governmentaffairs for the IIABA, says the IIABA supports FEMA's call for amulti-year extension of the NFIP.

In fact, Symington says, "this Thursday nearly 1,000 agents willbe visiting their lawmakers on Capitol Hill urging them to eitherreach agreement on the Flood Insurance Reform and Modernization Actor to pass a clean and simple multi-year extension."

Symington says, "This program is simply too important to themarketplace and consumers to be facing the threat of expirationevery three to six months."

Mike Becker, assistant vice president of federal affairs for thePIA, says that, "PIA continues to advocate that the Senate move acomprehensive flood insurance reform bill with a five-yearreauthorization."

However, avoiding another lapse by securing a multi-yearextension becomes even more critical as the scheduled May 31expiration of the flood insurance program draws closer, Beckersaid.

"If the Senate is unable to pass a five-year extension with themany needed reforms in the time remaining prior to May 31, PIAwould support FEMA's request to extend the current program for twoyears," Becker says. "Such a move could avert a serious disruptionin the market and provide a measure of stability for the millionsof Americans who rely on the continued availability of floodinsurance coverage."

Matt Gannon, NAMIC assistant vice president of federal affairs,says, "Ensuring that the NFIP is not allowed to lapse remains a toppriority for NAMIC, and we appreciate the urgency with which FEMAand others are treating this issue."

Gannon says that with just over a month before the May 31expiration, it's up to Congress to act.

But, he adds, "We at NAMIC hope that lawmakers, particularly inthe Senate, will take this opportunity to not just sustain theNFIP, but strengthen it by passing bipartisan reform legislationalready approved by the Banking committee," legislation which callsfor a five-year extension of the program.

The AIA reiterated that point in a statement Monday.

The Senate bill has no name. The House last July passed byoverwhelming vote, H.R. 1309, the "Flood Insurance Reform Act of2011."

The bill, sponsored by Rep. Judy Biggert, R-Ill, would, amongother provisions, extend the NFIP until Sept. 30, 2016.

The Senate Banking Committee reported to the floor a similarbill in early September. Floor action has been pending sincethen.

Updated to clarify that industry associations will accept atwo-year extension, but would rather see a five-year extension. Theprevious version of this story may have implied the industrysentiments were either/or.