WASHINGTON—U.S. Senator Bill Cassidy, M.D. (R-LA) today released a statement following FEMA publicly acknowledging an internal study finding that the implementation of Risk Rating 2.0 to the National Flood Insurance Program (NFIP) could cause 20% of policyholders to drop out of the program due to skyrocketing premiums. This was in response to a bipartisan, Cassidy led letter to FEMA in September, demanding a delay in Risk Rating 2.0, which will harm homeowners.
Despite repeated requests beginning in October 2021, FEMA has refused to provide a Congressional briefing on this study or share the results with the public.
“As far as we know, FEMA has conducted only one study on its new insurance pricing approach, and the results are terrible,” said Dr. Cassidy. “It took five months for FEMA to acknowledge their own report that as high as 20 percent of policy holders will be forced to leave the NFIP because they cannot afford coverage. We don’t need spin or more makeup on this pig. Risk Rating 2.0 is gearing up to slam homeowners over the next decade. FEMA needs to act.”