Pew, Diverse Organizations Support Prompt Launch of New Federal Flood Insurance Rating System

On Sept. 17, 2021, The Pew Charitable Trusts, along with organizations representing fiscal conservatives, environmental groups, the reinsurance industry, and others, sent a letter to U.S. Senate and House of Representatives leadership urging implementation of “Risk Rating 2.0,” the Federal Emergency Management Agency’s modernized rate-setting system for National Flood Insurance Program policies, as scheduled on Oct. 1. The letter emphasized that the new methodology will provide more accurate and equitable rates for property owners, and unlike the existing rating system, which would lead to rate increases for all policyholders, will make nearly 1.2 million policyholders eligible for decreased premiums. Additionally, almost 90% of policyholders will see either decreases or monthly increases of $10 or less beginning in 2022.