Isn’t it true that the Millman estimates of proportions of properties that would save were based on all properties rather than those in the NFIP population? Is it helpful to count savings for properties that aren’t buying NFIP now? These are probably low risk properties outside the mandate and self-insure. The estimates need to assess the impact on the NFIP pool.
It seems essential to preserve the “within-pool” cross subsidization or face shifting more losses to the Federal Treasury. How does private insurance fair if it bears a surcharge to preserve the current system of cross-subsidies?
The invisible hand must operate in a second best world.
The invisible hand knows when to pull itself out of the fire. The NFIP keeps sticking their hand in my back pocket for my wallet. The NFIP is full of waste and abuse just like every other government operation.
Isn’t it true that the Millman estimates of proportions of properties that would save were based on all properties rather than those in the NFIP population? Is it helpful to count savings for properties that aren’t buying NFIP now? These are probably low risk properties outside the mandate and self-insure. The estimates need to assess the impact on the NFIP pool.
It seems essential to preserve the “within-pool” cross subsidization or face shifting more losses to the Federal Treasury. How does private insurance fair if it bears a surcharge to preserve the current system of cross-subsidies?
The invisible hand must operate in a second best world.
The invisible hand knows when to pull itself out of the fire. The NFIP keeps sticking their hand in my back pocket for my wallet. The NFIP is full of waste and abuse just like every other government operation.