With one week until the National Flood Insurance Program (NFIP) reauthorization deadline of January 30, 2026, the Coalition for Sustainable Insurance (CSFI) has released a white paper exploring long-term solutions to natural catastrophe insurance affordability and availability. While continuing to uplift the urgency of a multi-year NFIP reauthorization with common-sense reform provisions, CSFI encourages policymakers to study multi-peril insurance program options.

The full paper – “Policy Options for a National Natural Catastrophe Insurance Program” – can be read here. An executive summary can be reviewed here. Options put forward by CSFI are informed by legislative precedents in the U.S., international best practices, and academics’ proposals.

Greater New Orleans, Inc. (GNO, Inc.) first formed CSFI in 2013 as a unified voice in response to the Biggert-Waters Act. CSFI was a driving force behind the passage of the Homeowner Flood Insurance Affordability Act (HFIAA) compromise legislation. CSFI has remained active, growing to reach over 900 contacts across over 35 states, from Florida to Alaska. Since Risk Rating 2.0’s implementation in 2021, CSFI has educated NFIP policyholders about the new pricing methodology, while working with congressional offices towards a program that offers affordable coverage, minimizes the insurance gap, and incentivizes risk mitigation.

In the newly-released paper, CSFI cites research and findings that demonstrate an acute strain on homeowners insurance affordability and availability, partially driven by persistent natural catastrophe risk exposure. For example, 99% of counties have experienced a flood loss since 1996, but one million NFIP policyholders have dropped federal flood insurance since 2009. In 2025, the U.S. experienced a billion-dollar disaster every ten days, on average. About one in eight American homeowners have forgone homeowners insurance entirely, although every state remains materially exposed to various perils.

Thus, the paper evaluates policy options for a national natural catastrophe insurance framework with the goals of 1) increasing risk mitigation; 2) expanding risk distribution; and 3) reducing reinsurance volatility. CSFI specifically identifies three potential paths forward, with a multi-peril approach with comprehensive risk management central to each:

1. A new federal reinsurance program for natural catastrophes, structured as a private-public pool or a large-loss backstop, like the Terrorism Risk Insurance Program
2. A new government-sponsored enterprise offering natural hazard insurance policies based on a property’s exposure to the specific hazards and creating a secondary market for private investment in natural hazard transfer securities
3. A cabinet-level FEMA administering a substantially reformed and modernized NFIP with expanded mandatory purchase requirements and expanded coverage for additional perils

CSFI does not endorse any single policy option. However, CSFI suggests that policymakers should formally study all options, including but not limited to these three. For example, Congress could authorize a Commission on Natural Catastrophe Risk and Insurance or require a report by the Government Accountability Office (GAO).   Academic institutions and other organizations can also advance research to evaluate options and their effectiveness.

While developing this white paper, CSFI convened a “NatCat Working Group” of experts and interested parties. Thought partners participating in the Working Group included Insurance for Good, InnSure, United Policyholders, Greater New Orleans Housing Alliance, BuildSOS, Gulf Coast Bank & Trust, Standard Mortgage Corporation, The Loftin Group, and PETERMAYER. Individual thought partners included Plaquemines Parish President W. Keith Hinkley, Jefferson Parish Councilmember Jennifer Van Vrancken, and Dr. Clifford Rossi, Professor at the University of Maryland’s Robert H. Smith School of Business. Stakeholders engaged during the project ranged from economists, engineers, scientists, academics, consultants, lobbyists, insurance agents, mortgage brokers, small business owners, and housing developers.

Michael Hecht, President & CEO of GNO, Inc. and founder of CSFI, said that “Natural catastrophic risk is one of the most important economic issues for our nation. If we can develop a solution that balances risk and affordability, we will be solving a vexing financial, scientific, and political problem for America.”

Peter Waggonner, Senior Policy Advisor for GNO, Inc. and CSFI, commented, “A natural catastrophe insurance program could become backbone of a national mitigation engine, embracing the NFIP’s legacy leadership in floodplain management. By creating a continuous virtuous cycle between risk reduction and premium reduction, losses can be prevented across perils, across communities, and across the country.”

Amy Bach, Executive Director of United Policyholders, remarked, “Every American is vulnerable to disasters and needs a financial safety net to be resilient. Given that lenders, local governments, and many other stakeholders’ economic health rests on those safety nets functioning well, and given that pre-loss insurance pooling is the most cost-effective path – now is the time to innovate in response to the current forces that are undermining pooling and leaving more and more households financially exposed.  United Policyholders is proud and grateful to be able to support and contribute to CSFI and GNO, Inc.’s white paper and important work identifying viable initiatives.”

Andy Kruger, CEO of BuildSOS Inc., added that “The Coalition for Sustainable Flood Insurance’s comprehensive policy framework represents a critical step forward in addressing America’s growing natural catastrophe insurance crisis. By integrating proven international best practices with mandatory risk reduction investments and multi-peril coverage, these options provide a politically viable path to protect homeowners, stabilize housing markets, and build community resilience nationwide. BuildSOS strongly supports this evidence-based approach that prioritizes both affordability and long-term sustainability through meaningful mitigation.”

Jefferson Parish Councilmember Van Vrancken shared, “Risk from natural disasters is something that unites all Americans—wildfires in the west, tornados in the central core, severe storms in the east and south. Along with long term reauthorization of NFIP, I strongly support the idea of working together to establish some form of national catastrophic coverage. With billions spent each year from coast to coast on recovery, it is critical to search for common sense solutions to broaden the pool and mitigate the risk for government, insurance companies and property owners. There are multiple paths we could follow, but it is time to begin the journey together.”

Andreanecia Morris, President/Chairwoman of the Greater New Orleans Housing Alliance, said, “As an affordable housing leader and longtime partner to the Coalition for Sustainable Flood Insurance (CSFI), I am relieved that the work has evolved to meet the moment. In Louisiana, we have faced more than our fair share of catastrophes and unfortunately, all US citizens know those same dangers, and their skyrocketing insurance costs reflect that reality. We must learn from the efforts to reform flood insurance and forge a path that leads to all communities in our country being protected after natural disasters.“

Dr. Rossi stated that, “There is an emerging homeowners insurance crisis both in terms of accessibility and affordability in the United States that cannot be resolved by piecemeal policy or market actions.  A national private-public solution is needed to a nationwide problem.  The proposals outlined in the NatCat white paper will generate the kind of dialogue and critical thinking needed at this time around homeowners insurance for millions of people.”

In 2026, CSFI will pursue further evaluation and advancement of policy options, with technical assistance in strategy development and data analysis from a consulting firm, while engaging additional stakeholders. Please contact CSFI to become a “thought partner” to this work, and visit www.csfi.info to learn more.