Financing Flood Losses: A Discussion of the National Flood Insurance Program

Resources for the Future Discussion Paper 17-03

30 Pages Posted: 7 Apr 2017

Date Written: February 14, 2017

Abstract

The National Flood Insurance Program (NFIP), housed in the Federal Emergency Management Agency (FEMA), has been providing flood insurance to households and businesses for almost 50 years. To inform the policy discussion leading up to reauthorization, this paper analyzes five aspects of the NFIP: (1) risk modeling and risk communication; (2) the roles of the public and private sector; (3) take-up rates; (4) incentives for risk reduction; and (5) rate setting and the financing of catastrophic flood events. Suggestions for reform are discussed.

Keywords: flood, insurance, disaster, premiums, NFIP

Suggested Citation

Kousky, Carolyn, Financing Flood Losses: A Discussion of the National Flood Insurance Program (February 14, 2017). Resources for the Future Discussion Paper 17-03, Available at SSRN: https://ssrn.com/abstract=2947917 or http://dx.doi.org/10.2139/ssrn.2947917

Carolyn Kousky (Contact Author)

Environmental Defense Fund ( email )

1875 Connecticut ave
257 Park Avenue South
Washington, DC 20009
United States

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