With insurance being one of CAP’s top priorities, we have been working to stay informed of the efforts of the Coalition for Sustainable Flood Insurance (CSFI). On July 29th, CAP attended a meeting hosted by CSFI to receive information regarding the latest National Flood Insurance Program (NFIP) reauthorization, which is set to expire September 30th. Starting October 1st, the NFIP is set to launch risk rating 2.0-Equity in Action, a new pricing methodology designed to deliver policyholders more equitable and easy to understand rates.
CSFI has established their top priorities for a short-term reauthorization they believe will have significant beneficial impacts. Those priorities include but are not limited to implementing rate caps, preserving grandfathering, and enhancing mitigation support. CSFI also shared some of their concerns regarding the implementation of risk rating 2.0 that include not having enough transparency, unknown rate increases, and needing more information from FEMA. A far more detailed list of their priorities and concerns can be reviewed here.
In a memo released in July 2021, CSFI advocated for the implementation deadline to be extended. On September 13, the NFIP Extension Act of 2021, authored by Senators Bill Cassidy, (R-LA), John Kennedy (R-LA), Cindy Hyde-Smith (R-MS), and Bob Menendez (D-NJ), was introduced, extending the program for one year. CSFI will also submit a letter to Congress affirming their support for NFIP reauthorization, continuing to emphasize the priority of lower rate caps in any long-term reauthorization, and requesting the delay in implementation for Risk Rating 2.0. CAP will continue to receive updates from CSFI regarding any changes to Risk Rating 2.0 and its implementation for policyholders.
Coastal Alabama Partnership (CAP) is a not-for-profit organization focused on providing a platform for regional leaders to convene, collaborate, and build consensus for coastal Alabama’s top priorities. CAP supports infrastructure and insurance policies that will facilitate economic competitiveness, environmental sustainability, and improve the overall quality of life for all citizens and businesses in coastal Alabama.