The House Financial Services Committee last week voted to advance the Flood Insurance Market Parity and Modernization Act to the full House for consideration. The legislation passed by a unanimous vote of 53-0.
The bill—which is supported by both ABA and the American Bankers Insurance Association—would provide consumers with private sector alternatives to the National Flood Insurance Program. Having such alternatives would increase competition and help drive down flood insurance costs, enhancing protection for consumers against flood damages in mortgage markets and ensuring that more borrowers can be covered by flood insurance. It would also help return the NFIP—a taxpayer funded initiative—to more robust physical health.