The uproar over actuarial rates on flood-insurance policyholders through a 2012 law appears to be on its way to resolution in the short-term, and this is not a moment too soon for a beleaguered property and casualty insurance industry.

The House Republican leadership is acting after Republicans in vulnerable states like Florida opposed the initial policy of stonewalling a Senate NFIP bill and threatened to force a vote on that legislation.

Personal lines insurers and their captive and independent agents will be paying close attention this week as the House works to craft a politically acceptable bill that will delay or reduce National Flood Insurance Program premium increases mandated by a 2012 law.

American International Group president and CEO Robert Benmosche said he will focus on improving the companys balance sheet and rewarding shareholders after the company reported strong earnings, although the companys property and casualty business combined ratio remained over 100.

In a breakthrough, the House Republican leadership has agreed to allow a vote on modifying flood insurance rate hikes imposed by a 2012 law. The preferred House bill would limit rate increases to no more than 15% annually.

Property and casualty industry officials gave unanimous support last week for the concept of the Federal Insurance Office, although they acknowledged the devil is in the details and said they remain comfortable with the current state-based regulatory system.

Statements by members of Congress in Louisiana and Mississippi that increases in flood-insurance premiums now being implemented will be delayed through a provision in a recent appropriations bill are inaccurate, according to industry lobbyists and FEMA officials.

The property and casualty insurance industry should wake up and smell the coffee, as it finds itself fighting a two-front war in Washington with no clear path ahead.