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Congress to Investigate Private Insurers’ Role in NFIP
The Federal Emergency Management Agency (FEMA) has long defended the use of private insurance companies to provide administrative, sales, and claims work for the 5.6 million policies under the National Flood Insurance Program (NFIP). In FY 2008 alone, companies and agents were paid over $750 million for their services, almost a quarter of total premium payments. This fact has caught the eye of policymakers in Washington in a recent report by the Government Accountability Office, a congressional watchdog agency.
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