LA | Insurance Commissioner Jim Donelon participated in a meeting organized by GNO Inc. Monday morning to advocate for greater transparency on the new flood insurance rates in the National Flood Insurance Program (NFIP) that will take effect for renewing policies on April 1, 2022.
The NFIP launched Risk Rating 2.0, a program that dramatically changes how flood risk is assessed and priced, on Oct. 1 for new policies. The new rates for existing policyholders begin taking effect on April 1 as policies come up for renewal. Risk Rating 2.0 aims to make the NFIP more actuarily sound by looking at the construction style and location of individual homes and their proximity to water rather than by relying on flood zone maps. Many people in flood prone states like Louisiana have expressed concern that there is not enough information about the potential financial impact of the new rating scheme.