About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

Preliminary Results From CBO's Analysis of the National Flood Insurance Program 1 (April 19, 2017)

handle is hein.congrec/cbo3432 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Keith Hall, Director U.S. Congress Washington, DC 20515 April 19, 2017 Honorable Jeb Hensarling Chairman Committee on Financial Services U.S. House of Representatives Washington, DC 20515 Re: Preliminary Results From CBO's Analysis of the National Flood Insurance Program Dear Mr. Chairman: The staff of the Committee on Financial Services has asked the Congressional Budget Office to provide any information it can about the soundness and affordability of the National Flood Insurance Program (NFIP)-before the agency releases the full report that you requested-to complement the committee's recent hearings on the subject. The major activities of the program, which is administered by the Federal Emergency Management Agency (FEMA), include collecting the premiums for flood insurance policies, paying claims for damage, mapping and mitigating flood risk, and promoting floodplain management. Current authorization for the NFIP expires on September 30, 2017. To arrive at the preliminary findings reported here, CBO compared collections from premiums (the total annual amount that households pay for their insurance) with the expected costs for the 5 million policies that were in place under the NFIP in the 48 contiguous states on August 31, 2016. This analysis uses estimates of expected claims-the largest, but highly uncertain, component of the program's expected costs-produced by commercially available models. Those estimates are significantly higher than the estimates resulting from FEMA's approach to measuring expected claims. CBO's findings thus far include the following: * A variety of comparisons involving different components of the NFIP's expected costs and of premiums for insurance purchased under the program suggest that the premiums fall short of costs. * Approximately 25 percent of NFIP policies are intentionally subsidized. * On net, premiums fall well short of expected costs in coastal counties but slightly exceed them in inland counties. www.cbo.gov

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most