CSFI Members Featured in Reuters; CSFI Shares Risk Rating 2.0 Overview on NPR Marketplace
Thomson Reuters Foundation reporter David Sherfinski met with various CSFI members across South Louisiana in April. The resulting article, “As climate risks rise, flood insurance costs stun US homeowners,” was released on May 11 via Reuters and Context News. Thanks to Reuters and CSFI members Bubrig Insurance Agency, North Lafourche Levee District, Home Builders Association of Greater New Orleans, Flood Mitigation Industry Association, and St. Charles Parish for sharing their stories and explaining Risk Rating 2.0.
NPR Marketplace also interviewed CSFI for an introductory story on Risk Rating 2.0, “Flood insurance program updates hit homeowners hard.” The story was broadcasted on May 16 during Marketplace’s Morning Report, syndicated on more than 800 public radio stations. The article addresses NFIP’s ratemaking overhaul with Risk Rating 2.0, and pressures on real estate markets and policyholders nationwide. CSFI discussed widely-appreciated NFIP reform priorities, including enactment of a means-tested affordability program and a freeze on, or forgiveness of, NFIP’s debt.
As addressed by David Maurstad in FEMA’s recent hearing with House Financial Services, “The NFIP currently carries $20.5 billion in debt to the U.S. Treasury and anticipates paying $619 million in interest expenses in Fiscal Year 2023 – this means we are using current premiums to pay for past claims. As currently structured, the program is unable to pay this debt back in full.” FEMA’s most recent policy in force data says 4.732M as of March 2023. So, each NFIP policyholder may pay $130.81 to service NFIP’s debt in FY23. This is 14.7% of an average current premium, or 7.2% of an average full-risk rate premium across the country.