CSFI’s recent white paper, “Policy Options for a Natural Catastrophe Insurance Program,” concluded that, “At minimum, a study commission involving experts across sectors should be authorized by Congress to evaluate all options and formally recommend an appropriate intervention.”

On April 22, the “Commission on Natural Disaster Risk Management and Insurance Act“ has been introduced as H.R.8439.   The bill was sponsored by Rep. Salud Carbajal (D-CA) and a bipartisan, bicoastal group of original cosponsors in Rep. Troy Carter (D-LA), Rep. Gabe Evans (R-CO), and Rep. Mike Ezell (R-MS).

The nonpartisan Commission would “examine the risks posed to the United States (both nationally and to individual States, localities, tribes and other geographic areas) by natural disasters and means for mitigating the risks and financial costs associated with losses caused by natural disasters.”  Specific to the NFIP, the Commission would assess “methods to promote the take-up of flood insurance policies through the National Flood Insurance Program to reduce financial losses caused by natural disasters in the uninsured sectors of the population of the United States.”

Within two years of enactment, the Commission would produce a report containing “any recommendations for legislative, regulatory, administrative, or other actions at the Federal, State, or local levels.”  In preparing this report, the Commission would consult with State insurance commissioners, Federal agencies, and public stakeholders   The Commission itself would be composed of 26 cross-sectoral members with expertise in insurance, reinsurance, insurance regulation, policyholder concerns, emergency management, risk management, public finance, financial markets, actuarial analysis, flood mapping and planning, and other areas.

Endorsements have already been received from Americans for Financial Reform (AFR), Bipartisan Policy Center (BPC), Ellevate, Environmental Defense Fund (EDF), Greater New Orleans Foundation, Greater New Orleans Housing Alliance (GNOHA), Gulf Coast Bank & Trust, Home Builders Association of Greater New Orleans (HBAGNO), Fair Insurance Rates for Monroe (FIRM), Flood Mitigation Industry Association (FMIA), National Association of Counties (NACo), New Orleans Area Habitat for Humanity (NOAHH), Northshore Business Council, PETERMAYER, Smart Home America, and United Policyholders (UP).

CSFI thanks members of Congress, congressional staff, endorsing organizations, and all partners involved in studying sustainable insurance solutions for our nation.  We will continue to champion the Commission on Natural Disaster Risk Management and Insurance Act and share relevant updates.