The North Carolina Department of Insurance and the National Association of Insurance Commissioners (NAIC) today reiterated that Congress should immediately reauthorize the National Flood Insurance Program (NFIP) prior to expiration on Sept. 30. Reauthorization would help avoid short-term extensions and program lapses that create uncertainty in the insurance, housing and lending markets.
The North Carolina Department of Insurance and the NAIC also support the Flood Insurance Market Parity and Modernization Act and facilitating the growth of the state-regulated private flood market.
“It is important to maintain a stable program to provide certainty for policyholders while also encouraging greater growth in the private flood insurance market as a complement to the NFIP,” said NC Insurance Commissioner Mike Causey. “State insurance regulators support this legislation because it provides consumers with more options for coverage which could lead to more affordable prices.”
In recognition of the growing private flood market, the NAIC has developed a requirement for insurers to include a line item in their annual financial statements highlighting their private flood insurance activity. This data will provide the NC Department of Insurance with a comprehensive overview of the size of the private flood insurance market and insights into the market as it grows.
“The National Flood Insurance Program plays a critical role in providing coverage, and any delay or lapse in the program will hurt consumers,” Commissioner Causey said. “We stand ready to work with Congress to support a long-term reauthorization.”