Industry group: Adding wind coverage to NFIP could hurt insurers

07/20/2010 | PropertyCasualty360

Passing a bill that would include wind coverage in the National Flood Insurance Program could result in $22.1 billion in lost premium taxes, income taxes and insurers' municipal bond investments, according to a PCI letter to House staff. The bill could also increase the program's debt, which currently stands at more than $18 billion, the letter said. But a staffer for Rep. Gene Taylor, D-Miss., who introduced the bill, said private insurers would benefit from the measure, as it would increase premium revenues, without increasing their risk exposure and capital costs.

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