So NFIP (taxpayer) is saddled with adverse selection. If they want to write flood they should be required to take out policies from NFIP. like the assigned risk program?
So how can it be affordable if only those at risk purchase it? The only way it can be made affordable (no subsidy) is for it to be a covered peril on all policies with a territorial multiplier (still a subsidy but a way to level it out a bit).
So NFIP (taxpayer) is saddled with adverse selection. If they want to write flood they should be required to take out policies from NFIP. like the assigned risk program?
So how can it be affordable if only those at risk purchase it? The only way it can be made affordable (no subsidy) is for it to be a covered peril on all policies with a territorial multiplier (still a subsidy but a way to level it out a bit).