Big ‘I’ Testifies Before Congress on NFIP Funding, Potential Reforms
Big ‘I’ agent from Hurricane Ian-torn region urges Congress to consider flood policy changes.
WASHINGTON, D.C., The Independent Insurance Agents & Brokers of America (the Big “I”) testified recently at a hearing before the U.S. House Financial Services Subcommittee on Housing and Insurance entitled “How Do We Encourage Greater Flood Insurance in America?” Chris Heidrick, CPCU, ANFI, CFP®, owner and principal of Heidrick & Company Insurance and Risk Management Services in Sanibel, Florida, and former chair of the Big “I” Flood Insurance Subcommittee, testified on behalf of the association. The hearing examined the overall level and availability of flood insurance in the United States, as well as the steps that could be taken to increase flood insurance participation rates within the National Flood Insurance Program (NFIP) and in the slowly growing private market.
“As you would guess, agents like myself that serve coastal and high-risk flooding areas sell the most flood insurance and are most familiar with the NFIP. However, to make progress with respect to the number of U.S. households insured for the peril of flood we need to focus on the less risky areas,” Heidrick testified. “In all areas, it is important to recognize that property owners have limited time and attention to dedicate to the purchase of flood insurance. When someone buys a home, they are often also changing jobs, selling a home, coordinating a move, applying for a mortgage, enrolling children in a new school, and much more.”
The Big “I” supports policies to increase take-up rates, whether in the NFIP or the private market and stressed that Congress should consider modest policy changes that would help grow the private market and protect consumers, such as clarifying requirements related to continuous coverage and midterm cancellations. The Big “I” continues to remind Congress that independent insurance agents and brokers play a critical role in the sale and delivery of flood insurance and must continue to do so for consumer participation to increase. Any kind of proposal that undercuts the valuable and trusted role that agents play in this process could have a negative impact on consumers.
Heidrick noted that, “agents play a critical role in retaining NFIP flood policies and preventing a decrease in participation rates. When a policyholder pays off a mortgage or is no longer required to carry flood insurance due to a map change, agents are the people that speak with homeowners and recommend they retain coverage.” Heidrick also conveyed the support of the Big “I” for H.R. 900, recently introduced by Rep. Blaine Luetkemeyer (R-Missouri) and Rep. Kathy Castor (D-Florida), which would specify that private flood insurance can satisfy NFIP continuous coverage requirements. Heidrick’s full statement and more information about the hearing is available on the committee’s website.
Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice® brand. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies.
