Louisiana Insurance Commissioner Tim Temple is backing U.S. Senators Bill Cassidy and John Kennedy in their call for FEMA to pause its Risk Rating 2.0 flood insurance overhaul. The move, reported by The Center Square, comes amid criticism over steep rate hikes and a perceived lack of transparency in the program’s implementation.
The Risk Rating 2.0 update, implemented in 2021, aimed to align National Flood Insurance Program (NFIP) premiums more closely with individual property risks. However, critics argue that the changes have resulted in significant premium increases – averaging a 234% rise in Louisiana – and have forced thousands of residents to abandon their coverage.
Temple and the senators contend that the program now jeopardizes affordability, homeownership, and economic stability in states prone to flooding. They are urging FEMA to suspend the Risk Rating 2.0 program, release the underlying data, and reinstate pricing safeguards for vulnerable households.
While FEMA maintains that the changes are essential for the NFIP’s long-term financial solvency, Temple and the lawmakers argue that the lack of transparency and public input renders the program unsustainable. Senators Cassidy and Kennedy warn that without intervention, home sales may stagnate, and disaster recovery costs could shift to taxpayers.
FEMA has yet to respond to the criticism. For more details, read the full story.
