“We continue to believe that adding wind coverage to the NFIP is not the right solution.”
“AIA commissioned a study by Towers Perrin showing the adverse financial impact to the NFIP and taxpayers could be as much as $100 billion to $200 billion if the federal government began displacing the private market by providing wind coverage.
“We had hoped the House Financial Services Committee would have chosen to pursue a proposed six-month study by the Government Accountability Office, which would have provided in-depth analysis of adding wind coverage to the NFIP and provided a better understanding of the real cost of adding wind coverage. AIA was willing to support such a study.
“While we do not support this outcome, AIA remains committed to working with Congress to pursue solutions to coastal property insurance issues.”
The bill also increases maximum coverage for flood insurance policies from $250,000 to $335,000 for residences, increases premiums, phases out subsidized rates paid by vacation-homeowners and raises the borrowing authority.
The bill should be ready to proceed to the House floor for a vote in September.
The American Insurance Association represents approximately 350 major insurance companies that provide all lines of property and casualty insurance and write more than $123 billion annually in premiums. The association is headquartered in Washington, D.C. and has representatives in every state.