Claims Journal has covered the status of the FEMA Review Council and potential impacts of its pending report on the NFIP, given the recent Exececutive Order continuing the Council.

Claims Journal writes that, “On January 23, one day before the council was set to expire, the White House issued a follow-up executive order extending the council’s charter until March 25, formally keeping the advisory body in place. The order does not alter FEMA’s existing authorities or funding, nor does it implement any policy changes. Without a final report, FEMA and its insurance partners continue to operate under existing rules governing claims handling, coordination with insurers, and disaster response planning.”

Claims Journal also covers impacts of the recent NFIP lapse: “The stalled review process coincided with a brief partial government shutdown tied to unresolved Department of Homeland Security funding, highlighting how FEMA operations and flood insurance administration can be affected by broader budget disputes.  Because the NFIP’s authority to issue and renew policies is tied to DHS appropriations, even short-lived funding lapses can introduce uncertainty for policyholders and insurers that rely on the federal flood program.”

CSFI suggests that “there are ways to analyze how to handle a forthcoming insurance crisis for our country, beyond what the FEMA Review Council puts out shortly…and an analysis through a congressional commission could inform the future of NFIP as well. It is just irresponsible to let NFIP sit and occasionally lapse without a formal evaluation of it.”

CSFI’s white paper, offering policy options for formal evaluation, can be reviewed online: csfi.info/natcatpaper.