Statement by Jimi Grande
Senior Vice President, Government Affairs
National Association of Mutual Insurance Companies
RE: National Flood Insurance Program’s Risk Rating 2.0 Modernization
“The Risk Rating 2.0 plan would at long last do something NAMIC has been urging Congress and the Federal Emergency Management Agency to do for more than a decade, make the National Flood Insurance Program more like an actual insurance program. For far too long, the NFIP has kept rates artificially low, relying on taxpayer-funded bailouts while effectively encouraging building in flood-prone areas and, worse, leaving property owners vulnerable to flood risks they had no idea even existed. Instead of the outdated flood zone maps the NFIP has used for decades, Risk Rating 2.0 will use the latest technology to accurately measure the risk of an individual property. Risk-based premiums will help move the NFIP toward fiscal stability and reduce the need for the billions of taxpayer dollars that have kept the program going.
“As a leader of the movement to bring risk awareness and mitigation to federal policy, NAMIC applauds the administration’s efforts to modernize the NFIP’s rating system. FEMA’s Risk Rating 2.0 plan is a significant step in the right direction toward helping federal, state, and local governments, as well as millions of homeowners, better understand flood risk.”