And most recently, NFIP was amended  by the Biggert-Waters Flood Insurance Reform Act of 2012. Some Indian reservations  have a mixture of Indian and non-Indian residents. Most tribal lands are  rural or remote, although some are near metropolitan areas. A Number of Factors Contribute to Indian Tribes’ Low NFIP Participation Rate

According to FEMA, as of August 2012, 37 out of 566 federally  recognized tribes nationwide—roughly 7 percent—were participating in  NFIP (see table 1). Many tribes lack the resources or administrative capacity to join  NFIP. Many tribal representatives said  that affordability would be an issue for tribal members. A tribal housing official from Alaska whose  members can participate in NFIP through the surrounding borough told us  that he had found that most members of his tribe dropped their  homeowners insurance as soon as their homes were paid off and that he  expected they would do the same with required flood insurance, which   An official for another Oklahoma tribe  can cost more than $1,000 a year.that was participating in NFIP but had no active individual policies said he  did not believe flood insurance was a priority for members of his tribe,  whose average annual household income was $6,000. FEMA Has Provided Indian Tribes with Training and Technical Assistance on Hazard Mitigation, Including Flood Insurance

FEMA’s outreach to tribes in the last few years has largely consisted of  emergency management and homeland security training for tribal officials  through its Emergency Management Institute (EMI), direct technical  assistance to tribes in preparing their multihazard mitigation plans, and  nationwide outreach for NFIP through its regional offices and the NFIP  FloodSmart marketing campaign. FEMA officials told us that the agency  helped to educate tribal officials about NFIP and floodplain management  through courses offered by EMI under a mitigation curriculum that  includes courses for floodplain managers on their roles and  responsibilities, flood insurance, and NFIP rules and regulations. HUD and USDA Work with Tribes on Housing Issues and May Provide Some Information on NFIP

HUD and USDA Rural Development provide assistance in the form of  housing and infrastructure grants, loans, and loan guarantees to Indian  tribes. They suggested,  among other things, more emphasis on educating tribes on the importance of flood  insurance, as at least one tribe had been experiencing more rain each  year; more outreach to tribes, including those without flood hazard maps, to  help them understand their vulnerability to floods and the advantages  of NFIP participation; meetings that brought together FEMA officials and elected tribal  councils that could make decisions on behalf of their tribes;  federal grants to help tribes develop elevation certificates and to  retrofit older properties to lower risk and make the policies more  affordable for members; a simulation exercise that included the host tribe, FEMA officials, and  other government officials with whom tribes would need to coordinate  in a flood-related disaster; and an amendment to the NFIP statute to address issues specific to tribes’  limited ability to adopt and enforce land use ordinances. As  we have seen, for example, the FloodSmart campaign sent thousands of  pamphlets to individual residents on Indian lands. Other private sector insurance options may offer tribes an alternative to  NFIP. Microinsurance is a  relatively new product that allows insurers to offer low-premium  policies with small coverage limits in developing areas. Recommendation

To help increase Indian tribes’ participation in NFIP, we recommend that  the Administrator of FEMA examine the feasibility of making mapping of  tribal lands a higher priority. A letter from the Director of  the Departmental GAO-OIG Liaison Office within the Department of  Homeland Security stated that FEMA will take steps to make mapping of  tribal lands a higher priority. Appendix I: Objectives, Scope, and Methodology

Our objectives were to examine (1) factors contributing to the current low  levels of National Flood Insurance Program (NFIP) participation by Indian  tribes, (2) the Federal Emergency Management Agency’s (FEMA) efforts  to increase tribes’ participation in NFIP, and (3) administrative and  legislative actions that could encourage Indian tribes and their members  to increase their participation in NFIP and potentially other flood  insurance programs. We reviewed FEMA data on communities participating in  NFIP, including those designated as tribal communities, and on tribes that  had flood hazard maps but were not participating in NFIP for various  reasons.
Why GAO Did This Study

Indian tribes' participation in NFIP is extremely low, even though some Indian lands are at high risk of flooding. In response to a Moving Ahead for Progress in the 21st Century Act mandate, GAO examined (1) factors affecting Indian tribes' participation in NFIP, (2) FEMA's efforts to increase tribes' participation in NFIP, and (3) administrative and legislative actions that could increase tribes' participation. GAO reviewed FEMA data on community participation in NFIP and prior GAO reports on flood insurance and Indian tribes, interviewed officials from selected Indian tribes and insurance companies, and collected information from relevant agencies and industry officials.

What GAO Found

As of August 2012, just 37 of 566 federally recognized tribes (7 percent) were participating in the National Flood Insurance Program (NFIP), and 3 tribes accounted for more than 70 percent of policies. A number of factors have affected tribes' participation. First, the Federal Emergency Management Agency (FEMA) has not placed a high priority on mapping rural areas, including many Indian lands, for flood risk, and most tribal lands remain unmapped. Without flood hazard maps, tribal communities may be unaware of their flood risk, even in high-risk areas. Partly for this reason, the risk of flooding is perceived as relatively low on many tribal lands. Further, tribes may lack the resources and administrative capacity needed to administer NFIP requirements, and NFIP premiums are often too high for low-income tribal members. Finally, unique tribal issues can make participation difficult. For example, some Indian tribes do not have reservations over which they can enact and enforce the land use ordinances that are required for NFIP participation. Instead, many have lands that were allotted to individuals rather than to a tribal entity, limiting the tribes' jurisdiction.
FEMA has done some outreach to tribes, largely through emergency management and homeland security training for tribal officials, technical assistance to tribes that are preparing their multihazard mitigation plans, and marketing through the NFIP FloodSmart campaign. FEMA officials told us that the courses offered through its Emergency Management Institute helped to educate tribal officials about NFIP and floodplain management and that its curricula included courses for floodplain managers on their roles and responsibilities, flood insurance, and NFIP rules and regulations. One tribal representative told us that he was participating in an ongoing curriculum and several tribes had developed multihazard mitigation plans. Finally, both the Department of Housing and Urban Development and the U.S. Department of Agriculture, Rural Development may provide NFIP information to Indian tribes as they provide assistance in the form of housing and infrastructure grants, loans, and loan guarantees.
Tribal representatives suggested steps that FEMA could take to encourage participation in NFIP--for example, placing a higher priority on mapping Indian lands and increasing FloodSmart marketing to tribal leaders rather than individuals. Given ongoing congressional interest in private sector alternatives to NFIP, GAO also explored whether private alternatives exist that could offer affordable coverage to low-income tribal members--for example, by expanding access to risk-pooling programs that could help insure more tribal households. One such program already insures thousands of Indian properties. Another relatively new product, microinsurance, would involve insurers offering less expensive policies with relatively low coverage limits but coverage for all tribes. FEMA said that its NFIP privatization study mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 would include an assessment of these alternatives.

What GAO Recommends

GAO recommends that the FEMA Administrator examine ways to make mapping of tribal lands in flood-prone areas a higher priority. FEMA agreed with our recommendation.