NFIP may require $30B borrowing limit after Sandy, regulator says

11/25/2012 | PropertyCasualty360

State insurance regulators think the National Flood Insurance Program's borrowing authority may need to be increased to $30 billion to settle claims related to Hurricane Sandy and its remnants, Mississippi Insurance Commissioner Michael Chaney says. The Obama administration intends to ask Congress to raise the borrowing cap to $25 billion, observers have said. Early estimates of storm losses, however, "are often later significantly revised," PCI's Don Griffin said. "PCI suggests that a more useful estimate comes from the actual data and claims being reported, as provided in this case by Ed Connor, deputy associate administrator at the NFIP," Griffin said.

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