Affordability of National Flood Insurance Program Premiums

151 Pages·2016·3.03 MB·English

Affordability of National Flood Insurance Program Premiums: Report 2
A F F O R DA B I L I T Y O F
NATIONAL FLOOD INSURANCE
PROGRAM PREMIUMS
R E P O R T 2
Committee on Affordability of
National Flood Insurance Program Premiums
Water Science and Technology Board
Division on Earth and Life Studies
Board on Mathematical Sciences and Their Applications
Division on Engineering and Physical Sciences
Committee on National Statistics
Division on Behavioral and Social Sciences and Education
Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
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This activity was supported by the Federal Emergency Management Agency Con-
tract Number HSHQDC-11-D-0009/HSFE60-13-J-0025. Any opinions, fndings,
conclusions, or recommendations expressed in this publication do not necessarily
refect the views of any organization or agency that provided support for the project.
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Suggested citation: National Academies of Sciences, Engineering, and Medicine.
2016. Affordability of National Flood Insurance Program Premiums—Report 2.
Washington, DC: The National Academies Press.
Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
The National Academy of Sciences was established in 1863 by an Act of Con-
gress, signed by President Lincoln, as a private, nongovernmental institution
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ter of the National Academy of Sciences to bring the practices of engineering
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contributions to engineering. Dr. C. D. Mote, Jr., is president.
The National Academy of Medicine (formerly the Institute of Medicine) was
estab lished in 1970 under the charter of the National Academy of Sciences to
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Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
COMMITTEE ON AFFORDABILITY OF
NATIONAL FLOOD INSURANCE PREMIUMS
LEONARD A. SHABMAN, Chair, Resources for the Future, Washington,
D.C.
SUDIPTO BANERJEE, University of California, Los Angeles
JOHN J. BOLAND, Johns Hopkins University, Baltimore, Maryland
PATRICK L. BROCKETT, University of Texas, Austin
RAYMOND J. BURBY, University of North Carolina, Chapel Hill
SCOTT EDELMAN, AECOM, Greensboro, North Carolina
W. MICHAEL HANEMANN, Arizona State University, Tempe
CAROLYN KOUSKY, Resources for the Future, Washington, D.C.
HOWARD C. KUNREUTHER, University of Pennsylvania, Philadelphia
SHIRLEY LASKA, University of New Orleans, New Orleans, Louisiana
DAVID R. MAIDMENT, University of Texas, Austin
DAVID MAURSTAD, OST, Inc., Washington, D.C.
ALLEN L. SCHIRM, Mathematica Policy Research, Washington, D.C.
Staff
ED J. DUNNE, Study Director, Water Science and Technology Board
CONSTANCE F. CITRO, Senior Board Director, Committee on National
Statistics
SCOTT T. WEIDMAN, Director, Board on Mathematical Sciences and
Their Applications
ANITA A. HALL, Senior Program Associate, Water Science and
Technology Board
v
Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
WATER SCIENCE AND TECHNOLOGY BOARD
GEORGE M. HORNBERGER, Chair, Vanderbilt University, Nashville,
Tennessee
EDWARD J. BOUWER, Johns Hopkins University, Baltimore, Maryland
DAVID A. DZOMBAK, Carnegie Mellon University, Pittsburgh,
Pennsylvania
M. SIOBHAN FENNESSY, Kenyon College, Gambier, Ohio
BEN GRUMBLES, Maryland Department of the Environment, Baltimore
GEORGE R. HALLBERG, The Cadmus Group, Watertown, Massachusetts
ARTURO A. KELLER, University of California, Santa Barbara
CATHERINE L. KLING, Iowa State University, Ames
LARRY LARSON, Association of State Floodplain Managers, Madison,
Wisconsin
DINAH LOUDA, Veolia Institute, Paris, France
DAVID I. MAURSTAD, OST, Inc., Washington, D.C.
STEPHEN POLASKY, University of Minnesota, St. Paul
MARYLYNN V. YATES, University of California, Riverside
JAMES W. ZIGLAR, SR., Van Ness Feldman, Washington, D.C.
Staff
JEFFREY JACOBS, Director
LAURA J. EHLERS, Senior Program Offcer
STEPHANIE E. JOHNSON, Senior Program Offcer
ED J. DUNNE, Program Offcer
M. JEANNE AQUILINO, Financial and Administrative Associate
MICHAEL J. STOEVER, Research Associate
ANITA A. HALL, Senior Program Associate
BRENDAN R. MCGOVERN, Senior Program Assistant
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Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
BOARD ON MATHEMATICAL SCIENCES
AND THEIR APPLICATIONS
DONALD G. SAARI, Chair, University of California, Irvine
DOUGLAS N. ARNOLD, University of Minnesota, Minneapolis
JOHN B. BELL, E.O. Lawrence Berkeley National Laboratory, Berkeley,
California
VICKI M. BIER, University of Wisconsin, Madison
JOHN R. BIRGE, The University of Chicago, Chicago, Illinois
RONALD R. COIFMAN, Yale University, New Haven, Connecticut
L. ANTHONY COX, JR., Cox Associates, Denver, Colorado
MARK L. GREEN, University of California, Los Angeles
PATRICIA A. JACOBS, Naval Postgraduate School, Monterey, California
BRYNA KRA, Northwestern University, Evanston, Illinois
JOSEPH A. LANGSAM, University of Maryland, College Park
SIMON A. LEVIN, Princeton University, Princeton, New Jersey
ANDREW W. LO, Massachusetts Institute of Technology, Cambridge
DAVID MAIER, Portland State University, Portland, Oregon
WILLIAM A. MASSEY, Princeton University, Princeton, New Jersey
JUAN C. MEZA, University of California, Merced
FRED S. ROBERTS, Rutgers University, Piscataway, New Jersey
GUILLERMO SAPIRO, Duke University, Durham, North Carolina
CARL P. SIMON, University of Michigan, Ann Arbor
KATEPALLI SREENIVASAN, New York University, New York, New York
ELIZABETH A. THOMPSON, University of Washington, Seattle
Staff
SCOTT T. WEIDMAN, Director
NEAL D. GLASSMAN, Senior Program Offcer
MICHELLE K. SCHWALBE, Program Offcer
BETH DOLAN, Financial Associate
RODNEY HOWARD, Administrative Assistant
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Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
COMMITTEE ON NATIONAL STATISTICS
LAWRENCE D. BROWN, Chair, University of Pennsylvania, Philadelphia
JOHN M. ABOWD, Cornell University, Ithaca, New York
MICHAEL HOUT, New York University, New York
KAREN KAFADAR, Indiana University, Bloomingdale
SALLIE KELLER, Science and Technology Policy Institute, Washington, DC
LISA LYNCH, Brandeis University, Waltham, Massachusetts
SALLY C. MORTON, University of Pittsburgh, Pittsburgh, Pennsylvania
JOSEPH NEWHOUSE, Harvard University, Cambridge, Massachusetts
SAMUEL H. PRESTON, University of Pennsylvania, Philadelphia
HAL S. STERN, University of California, Irvine
ROGER TOURANGEAU, University of Maryland, College Park, and
University of Michigan, Emeritus
ALAN ZASLAVSKY, Harvard Medical School, Boston, Massachusetts
Staff
CONSTANCE F. CITRO, Director
MICHAEL L. COHEN, Senior Program Offcer
DANIEL L. CORK, Senior Program Offcer
AGNES E. GASKIN, Administrative Assistant
HERMANN HABERMANN, Senior Program Offcer
BRIAN HARRIS-KOJETIN, Deputy Director
CAROL C. HOUSE, Senior Program Offcer
MARY KASPER, Senior Program Assistant
NANCY J. KIRKENDALL, Senior Program Offcer
JULIA KISA-SHAKEER, Financial Associate
EILEEN LEFURGY, Program Coordinator
CHRISTOPHER D. MACKIE, Senior Program Offcer
ANTHONY S. MANN, Program Associate
KRISZTINA MARTON, Senior Program Offcer
GEORGE SCHOEFFEL, Research Assistant
ESHA SINHA, Associate Program Offcer
MICHAEL J. SIRI, Program Associate
CYNTHIA THOMAS, Senior Program Offcer
GLENN WHITE, Senior Program Offcer
JORDYN WHITE, Program Offcer
GOOLOO WUNDERLICH, Senior Program Offcer
viii
Copyright © National Academy of Sciences. All rights reserved.
Affordability of National Flood Insurance Program Premiums: Report 2
Acknowledgments
he report was reviewed in draft form by individuals chosen for their
breadth of perspectives and technical expertise in accordance with
Tthe procedures approved by the National Academies’ Report Review
Committee. The purpose of this independent review was to provide candid
and critical comments to assist the institution in ensuring that its published
report is scientifcally credible and that it meets institutional standards
for objectivity, evidence, and responsiveness to the study charge. The re-
view comments and draft manuscript remain confdential to protect the
integrity of the deliberative process. We wish to thank the following indi-
viduals for their review of this report: Kenneth J. Arrow, National Academy
of Sciences/National Academy of Medicine, Stanford University; Bruce
Bender, Bender Consulting Services, Inc., Phoenix, AZ; Chad B erginnis,
The Association of State Floodplain Managers, Madison, WI; Lawrence
D. Brown, University of Pennsylvania, Philadelphia; Lloyd Dixon, RAND
Corporation, Santa Monica, CA; Gerald Galloway, National Academy of
Engineering, University of Maryland, College Park; Earthea Nance, Texas
Southern University, Houston, TX; and Doug Plasencia, Michael Baker Jr.
Inc., Phoenix, AZ.
Although the reviewers listed above have provided many constructive
comments and suggestions, they were not asked to endorse the conclusions
or recommendations nor did they see the fnal draft of the report before
its release. The review of this report was overseen by Michael Goodchild,
University of California, Santa Barbara, and David Moreau, University of
North Carolina, Chapel Hill. Appointed by the National Research Coun-
cil (NRC), they were responsible for making certain that an independent
ix
Copyright © National Academy of Sciences. All rights reserved.