PIA of Florida Urges NFIP Reauthorization & Updates Hill on Risk Rating 2.0

Members of the PIA of Florida spent this week urging members of their Congressional delegation to pass a long-term reauthorization of the National Flood Insurance Program (NFIP) as part of PIA’s 2022 Advocacy Day.

Their efforts this week were part of PIA’s 2022 series of year-round, state-specific advocacy events that offer agents the chance to meet with federal policymakers on the issues that matter most to them. Throughout the year, PIA members from across the country will spend their 2022 Advocacy Days similarly engaging with lawmakers on one or more of PIA’s 2022 Issues of Focus.

In their meetings, Florida’s PIA members advocated for a long-term reauthorization of the NFIP that includes important reforms. The NFIP’s most recent five-year reauthorization expired on September 30, 2017, and it is currently operating on its 19th short-term extension since then. Another prospective lapse looms on March 11, just eight days from now, if Congress does not act.

While PIA’s immediate concern is to secure a long-term reauthorization of the program, members from Florida also discussed the need for necessary reforms, as laid out in PIA’s current Issues of Focus. In addressing proposals that Congress may consider in the future, PIA members emphasized that any long-term reauthorization of the NFIP must maintain the current Write Your Own (WYO) reimbursement rate. PIA members described their indispensable expertise and how they use it in the sale and service of NFIP policies. They cautioned that any reduction in the WYO reimbursement rate would likely prompt prohibitively costly cuts to NFIP agents’ commissions. PIA has strenuously opposed previous efforts to reduce the reimbursement rate and will continue to do so.

PIA of Florida members also updated congressional offices on the implementation of the NFIP’s new risk rating methodology, known as Risk Rating (RR) 2.0. RR 2.0 assigns premium rates to individual properties using substantially more granular data, aligning rates more closely to each property’s actual level of flood risk.  RR 2.0 was implemented as to all new policies and some existing policies this past October 1, 2021. Remaining renewals will transition to RR 2.0 beginning with policies that are subject to renewal on April 1, 2022. From that point on, all NFIP policies—renewals and new business—will have their premiums priced using the new methodology.

PIA looks forward to continuing to work with the Florida congressional delegation to protect the NFIP and to support the agents engaged in the essential task of making the flood program understandable and attractive to consumers.