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Flood Insurance: FEMA’s Rate-Setting Process Warrants Attention
Flood Insurance: FEMA’s Rate-Setting Process Warra

 
Our Price: $25.00
By Orice M. Williams (au)
Year: 2008
Pages: 54
Binding Paperback

Product Code: 1437912214

Description
 
Questions about the financial status of the National Flood Insurance Program (NFIP) have increased since the 2005 hurricanes, which left the program with an unprecedented $17.4 billion deficit. Among the concerns are the subsidized rates NFIP must provide for about 25% of the policies, mostly for older buildings in high-risk flood zones. And although fully risk-based rates are supposed to reflect actual flood risk, concerns have been raised that they do not. This report evaluates: (1) FEMA’s process for setting full-risk rates to determine whether it produces rates that accurately reflect the risk of flooding; and (2) the process that FEMA uses to set subsidized rates and their effect on the financial condition of NFIP. Charts and tables.

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