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Fair Flood

Fair Flood is a service dedicated to educating the Flood Insurance Community with fact-based analysis.

Fair Flood is pleased to make available “Drowning Under Artificially Low Rates: Analysis of NFIP Data Demonstrates Unsustainable Rates and Increasing Taxpayer Burden” detailing the findings of comprehensive analysis by Poulton Associates with assistance from the scientists at Guidewire HazardHub.


New analysis of data from FEMA’s National Flood Insurance Program (NFIP) and the Department of Homeland Security shines a light on the program’s rate inadequacies and the consequences artificially low rates will have on consumers, taxpayers and the environment. Analysis by Poulton Associates, conducted with the assistance of Guidewire HazardHub, illustrates the NFIP’s failure to raise rates and quantifies just how far rates are from where they should be relative to NFIP historical claims costs.

Examining data back to 2003, this report confirms:

  1. Year-over-year rates for the NFIP have largely decreased and have come nowhere close to meeting the 5% minimum increase instructed by Congress.

  2. The implementation of Risk Rating 2.0 will not bring the NFIP to solvency in the near term.

Press Release: 

Through a detailed analysis of FEMA’s National Flood Insurance Program (NFIP) data on policies and claims from 2010 – 2018, HazardHub’s team of scientists compiled a comprehensive report focused on costs, benefits, income groups, and geographic distribution.

The basic question considered by the report is: Who benefits the most from the federal flood insurance program?

The results show that:

  1. the NFIP provides a substantial subsidy to the upper-income groups; and

  2. that loss ratios for the NFIP are dramatically higher in areas where property values are high and development has been permitted in risky areas.

Press Release: 

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