Kicking the can down the road yet again! Risk based premiums will not work for political reasons as well as financial reasons. This concept was implemented in 2012, but then postponed due to unaffordable premiums, The current umbrella of cost sharing is the only way a National Policy will work, by spreading those localized costs nationally as intended by the original NFIP legislation..
The current program is so broken and so upside down that drastic measures are needed sooner rather than later. I think that the problem lies in the fact that there is a relatively small number of people that are potentially affected vs the huge amounts of $$$ claims that occur with a cat loss. Plus, FEMA pays out a lot more money than just covered claims.
Typical government program. Florida had (still has to a lesser extent) a similar issue with their Citizens insurance program. The unaffected citizens were supplementing a very few who lived in south Florida, and even with that inequity taking place, the program was still facing the potential of a massive shortfall. They are currently depopulating Citizens and forcing many of the freeloading moochers to buy their coverage in the open market.
NFIP/FEMA is going to have to become actuarially sound, and a lot of people aren’t going to like that.
The unaffected citizens were supplementing a very few who lived in south Florida, and even with that inequity taking place, the program was still facing the potential of a massive shortfall. They are currently depopulating Citizens and forcing many of the freeloading moochers to buy their coverage in the open market.
Kicking the can down the road yet again! Risk based premiums will not work for political reasons as well as financial reasons. This concept was implemented in 2012, but then postponed due to unaffordable premiums, The current umbrella of cost sharing is the only way a National Policy will work, by spreading those localized costs nationally as intended by the original NFIP legislation..
The current program is so broken and so upside down that drastic measures are needed sooner rather than later. I think that the problem lies in the fact that there is a relatively small number of people that are potentially affected vs the huge amounts of $$$ claims that occur with a cat loss. Plus, FEMA pays out a lot more money than just covered claims.
Typical government program. Florida had (still has to a lesser extent) a similar issue with their Citizens insurance program. The unaffected citizens were supplementing a very few who lived in south Florida, and even with that inequity taking place, the program was still facing the potential of a massive shortfall. They are currently depopulating Citizens and forcing many of the freeloading moochers to buy their coverage in the open market.
NFIP/FEMA is going to have to become actuarially sound, and a lot of people aren’t going to like that.
The unaffected citizens were supplementing a very few who lived in south Florida, and even with that inequity taking place, the program was still facing the potential of a massive shortfall. They are currently depopulating Citizens and forcing many of the freeloading moochers to buy their coverage in the open market.
Another reason for the delay is the upcoming Government Shutdown 2.0 in a few more days.