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RCED-83-107 1 (1983-02-28)

handle is hein.gao/gaobabdyb0001 and id is 1 raw text is: 

RELEASED


R E P O  R T BY   T H E  U .S .           - °'°°°'.,. - °  .,it ,,1


General Accounting Office








The Effect Of Premium Increases On

Achieving The National Flood Insurance

Program's Objectives



This report examines the impact that rate
increases have had on achieving the
National Flood Insurance Program's objec-
tive of reducing Federal expenditures on
disaster assistance. This objective is more
achievable if there is wide participation in
the program. Since January 1981, the pro-
gram's rates have been increased three
times; however, participation has declined.

GAO's analysis of the effect of the rate
increases on participation indicates that
while the rate increases have influenced
the decline in program participation, other
factors, such as a decline in flooding in the
last few years and the general economic
recession, also contributed to the decline.
GAO's analysis could not determine which
of the factors had the most influence.










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                                                            GAO/RCED-83-107
    CC                               2f7/                    FEBRUARY 28, 1983
    _ICCOU141                                     Z7 7 3//2o y Z

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