Fair Flood is a service dedicated to educating the Flood Insurance Community with fact-based analysis.
FairFlood.com is pleased to make available “Beneath the Surface: Analysis of NFIP Data Demonstrates Need for More Equitable Rates” detailing the findings of a comprehensive study conducted by scientists at HazardHub, Inc., which specializes in translating geospatial data and providing property hazard risk data bases.
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:
the NFIP provides a substantial subsidy to the upper-income groups; and
that loss ratios for the NFIP are dramatically higher in areas where property values are high and development has been permitted in risky areas.