In advance of the Senate Committee on Banking, Housing, and Urban Affairs’ hearing on the “Reauthorization of the National Flood Insurance Program: Local Perspectives on Challenges and Solutions,” Lee Covington, President of the Reinsurance Association of America (RAA), submitted a statement urging comprehensive reforms for the NFIP.
Covington commended Chairman Sherrod Brown (D-OH) for convening the hearing, emphasizing the urgent need for a long-term reauthorisation of the NFIP.
He advocated for reforms that focus on strengthening the NFIP’s financial framework, promoting resiliency, fostering the development of a private flood insurance market, closing the flood insurance protection gap, and creating resilient and insurable communities.
Expressing support for bipartisan legislation introduced by Senator Tim Scott (R-SC), Covington applauded efforts to reduce risk in repetitive loss areas damaged by floods.
He acknowledged Senator Scott’s recognition that the current cycle of build-flood-rebuild is detrimental to both the NFIP and American taxpayers, who bear the ultimate burden of the program’s costs.
A key highlight of Covington’s statement was a call for a fundamental reform to remove barriers preventing homeowners and small businesses from choosing between NFIP and private flood insurance without penalty.
He emphasised the necessity for Congress to adopt a simple and common-sense reform, allowing individuals the freedom to choose their coverage.
Covington underscored the importance of timely action, stating, “The time is now to get that done for hundreds of thousands, if not millions, of Americans with an NFIP policy.” He expressed RAA’s support for H.R. 900, a measure that previously passed in the House without opposition.
