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U.S. senators from coastal states are predicting "an actuarial disaster" in the future once FEMA's new flood insurance rating systems goes into full swing.
In a press call on Sept. 30, Louisiana Sen. Bill Cassidy and New Jersey Sen. Bob Menendez called for President Biden to delay the implementation of the National Flood Insurance Program's new rating system, Risk Rating 2.0, which went into effect on Oct. 1.
Cassidy acknowledged the new methodology would go into effect. However, he said that his "personal plea is that the president would tell FEMA not to proceed with Risk Rating 2.0. but to look for alternatives."
Cassidy and Menendez held their press call just days after announcing they, along with U.S. Senators Marco Rubio (R-FL), Cindy Hyde-Smith (R-MS) and John Cornyn (R-TX), had introduced legislation to delay the rollout of the new risk rating methodology they say would result in flood insurance rate hikes for residents in their states. NFIP Risk Rating 2.0 Delay Act of 2021 would have required FEMA, which manages the NFIP, to delay that agency's Risk Rating 2.0 rollout until Sept. 30, 2022.
Cassidy and Menendez said their ultimate goal is to inspire Congress to act on reform proposals to revamp the flood insurance program.
They believe the new rating system, which calls for year-over-year rate increases...