Poulton Associates has concluded negotiations for agreements that will make billions of dollars in flood insurance capacity available to consumers in the State of Florida and in other coastal areas throughout the country.
Coastal areas are extremely difficult to insure for flood and providing greater flood insurance capacity in Florida is particularly significant because approximately one third of all U.S. flood risks are located in that state. The NCIP has billions of dollars of flood insurance in force with thousands of residential and commercial properties insured for the peril of flood making it the largest nationwide competitor to FEMA’s National Flood Insurance Program (NFIP).
In Florida and across the nation there is overwhelming consumer demand for private flood insurance like the NCIP. However, perplexing language in current federal law as well as inaction on the part of a few lending regulators has created confusion in the minds of some mortgage lenders over the acceptability of private flood insurance.
According to Poulton Associates CEO Craig Poulton, "While the vast majority of lending regulators and lenders happily accept our products, as long as future regulatory edicts remain uncertain, flood insurance buyers will be at a disadvantage as we all wait for clarity as to what shape future regulatory guidance will take. The current regulatory disorder as well as the resulting damage to consumers emanating from some lenders will evaporate if Congress acts to pass The Flood Insurance Market Parity and Modernization Act."
In June of this year Rep. Dennis Ross (R) and his colleague Rep. Patrick Murphy (D), both from Florida, introduced H.R. 2901. Also known as The Flood Insurance Market Parity and Modernization Act, the bill will leave no room for misinterpretation as to what the law says relative to any flood insurance policy issued by a private insurance company.
Poulton Associates agrees with the two representatives’ contention that the legislation will encourage private insurers to enter the government-dominated flood insurance market, creating greater competition that will result in better policies and pricing for property owners. Congressman Murphy has said that the bill would get the federal government out of the way of letting Florida foster a competitive market to drive down costs for buyers in his state and across America.
Mr. Poulton agrees, saying, "Passage of The Flood Insurance Market Parity and Modernization Act will clear the way for the private flood insurance market to begin taking over a significant portion of U.S. flood insurance risk which will not only save insurance consumers millions of dollars but will undoubtedly save U.S. taxpayers billions of dollars as well."
Poulton Associates said it sees a broad base of support for the bipartisan measure currently making its way through Congress and because of this the company has decided to move forward with preparations for the expansion of the flood insurance component of the NCIP. They anticipate that they will be able to make flood insurance available to thousands of consumers in U.S. coastal areas within a very short period of time once the bill is passed.