In a new report from FEMA and the Office of the Flood Insurance Advocate (OFIA), the agency shared how it is planning on reducing the complexity of the National Flood Insurance Program. The report details several areas of customer frustration related to the NFIP that warrant a systemic solution.
“FEMA’s strategic goals established in 2018 remain in place to build a culture of preparedness, ready the nation for catastrophic disaster, and reduce the complexity of FEMA programs, particularly the NFIP,” said David Stearrett, FEMA Flood Insurance Advocate. “FEMA’s component, the Federal Insurance and Mitigation Administration (FIMA), remains committed to “moonshot” targets set to achieve these goals by doubling the number of structures covered by flood insurance and increasing investment in mitigation four-fold by 2023. The growth in the private flood insurance market furthers the target of doubling flood insurance coverage.”
The OFIA has identified five issues of confusion and frustration for policyholders and property owners that can be largely addressed by the Federal Insurance and Mitigation Administration (FIMA) program offices.
“The issues are complex, and many require collaboration across several NFIP areas to address the challenges they present to current and future NFIP customers,” the OFIA notes “The issues are presented in three parts: the key issue affecting customers, the background of the issue, and the OFIA’s recommendations for consideration.”
These issues include the application of the elevation rating, rating discounts, group flood insurance, refunds, and Costs of Compliance.
The OFIA also notes where progress is already being made, such as significant changes have been made to improve communication with policyholders, greater communication between the Federal Insurance Directorate and the Mitigation Directorate, and expanded refund eligibility for rating corrections to five years.
The OFIA's complete report can be found here.