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National Flood Insurance Program: Continued Progress Needed to Fully Address Prior GAO Recommendations on Rate-Setting Methods
Alicia Puente Cackley (au)
The National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA), provided insurance to help protect over 5.1 million policyholders against flood losses in 2015. The program has struggled financially in its attempts to keep rates affordable and pay for losses from catastrophic flooding. GAO has previously identified a number of challenges to FEMAńˇ╗s rate-setting process, including the lack of updated information in the model and the impact of charging rates that do not fully reflect flood risk. This report (1) examines FEMAńˇ╗s current methods for setting rates and compares them with practices used by private insurers; and (2) identifies steps FEMA has taken to address recommendations from GAOńˇ╗s October 2008 and July 2013 reports. Tables and figures. This is a print on demand report.
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