P&C Lobbyists Push For Longer-Term Extension Of Flood Insurance Program

A tentative schedule obtained by the National Underwriter indicates that the Senate Banking Committee hopes to hold a hearing Sept. 23 on flood issues.

Joel Kopperud, a director of government affairs at the Council of Insurance Agents and Brokers, added that there are several bills that have the reauthorization language, but getting any consideration in the Senate with its limited agenda this month is going to be difficult.

"It's really a race against the clock at this point," he said. "We're pushing hard for a one-year reauthorization in a potential continuing resolution, which is what exists in the DHS appropriations bill."

Of course, he added, "we would prefer the Senate pass the House-passed five-year reauthorization, but that's not likely to happen with the other issues on their calendar."

Mr. Kopperud said that, separately, CIAB is "encouraged" that the ongoing battle over whether to include wind coverage in the NFIP may finally be addressed by a bill that was introduced by Sen. Roger Wicker, R-Miss., this summer.

"There is, of course, an ongoing dispute among stakeholders on this, and we're hoping Sen. Wicker's language is the starting point for negotiations," he said.

Don Griffin, vice president of personal lines at the Property Casualty Insurers Association of America–which chairs the "Write Your Own" Flood Insurance Coalition, consisting of carriers writing and servicing coverage for the NFIP–voiced deep concern that Congress has returned and yet "there is still not a clear path for the NFIP reauthorization."

Mr. Griffin said that in the "midst of intense debate over tax cuts and attention focused on the midterm elections, our biggest challenge is time right now."

"We have to keep up the pressure," Mr. Griffin said. "This is one of our top priorities."

At the same time time, Mike Becker, national director of federal affairs for the National Association of Professional Insurance Agents, warned that failure to extend the program, or for the Senate to act on the long-term reform and reauthorization legislation passed by the House recently, will cause disruptions to the real estate market and undermine confidence in the flood program.

He said Congress plans to leave by Oct. 13 to campaign for the midterm elections, and noted that an electorate angry over a slowing and troubled economy is generating gridlock on Capitol Hill.

Mr. Becker cited "many negative effects" from the uncertainty that results every time Congress allows the flood program to expire, then renews it for a period of weeks or even just days.

He noted that, when expirations occur, real estate closings get delayed and property markets slow to a halt. "If the goal of lawmakers is to spur economic recovery, continuing this pattern of expirations followed by short extensions of the flood program is counterproductive," he said.

The repeated failure of Congress to provide an adequate extension of the NFIP is also beginning to erode participation by Write Your Own carriers, he added.