The National Flood Insurance Program (NFIP), housed in the Federal Emergency Management Agency (FEMA), has been providing flood insurance to households and businesses for almost 50 years. To inform the policy discussion leading up to reauthorization, this paper analyzes five aspects of the NFIP: (1) risk modeling and risk communication; (2) the roles of the public and private sector; (3) take-up rates; (4) incentives for risk reduction; and (5) rate setting and the financing of catastrophic flood events. Suggestions for reform are discussed.
Financing Flood Losses: A Discussion of the National Flood Insurance Program
This paper analyzes five aspects of the National Flood Insurance Program and provides suggestions for reform: (1) risk modeling and communication; (2) the roles of the public and private sector; (3) take-up rates; (4) incentives for risk reduction; and (5) rate setting and financing catastrophic losses.
Working Paper by Carolyn Kousky — Feb. 14, 2017Download
Social Return on Investment Analysis and Its Applicability to Community Preparedness Activities: Calculating Costs and Returns
This paper provides an overview of the use of social return on investment analysis, which accounts for social and environmental benefits, to evaluate investments in community disaster preparedness.
A Discussion of the National Flood Insurance Program
The National Flood Insurance Program needs to be updated to reflect improvements in our ability to model, communicate, and transfer disaster risk—including radical changes in technology and data. This brief outlines priority reforms for Congress to consider.
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