When President-elect Donald Trump said, he wanted to “drain the swamp,” he may not have been referring to the sinking federal flood insurance program. Register Now Already have an account? Sign In Now
President-elect Trump could reform the flood insurance industry to rectify the $23bn debt the National Flood Insurance Program (NFIP) owes taxpaying citizens, as part of his “drain the swamp” revamp of federal systems. Flood insurance was nationalised in 1978, with private insurers used to offer federally-backed insurance, meaning all underwriting loss was transferred to the taxpayer. The NFIP is now a $70bn-a-year program that covers about half of US property losses, and has been criticised for its high costs and poor performance. The NFIP’s charter will expire in September 2017, making it a target for reform.