CEO Privatized Insurance Program
The future of the National Flood Insurance Program (NFIP) is still a subject of debate in Congress and concern for both agents and customers. “A law that aims to privatize the program has been introduced by a group of House members, but this can’t be done because there is a magic market”, an industry executive said.
Robert Rusbuldt as IIABA President and CEO said that members of Congress think that if members of the House privatize the program, the market will magically appear to be managed by a panel of three insurance-industries CEO and president of the Insurance Information Institute.
After Rusbuldt discussion with NU, he said that he strongly supports privatization as the government program, but this is not practical with the NFIP. He also added that the NFIP reform is very important as well as some parts can be privatized, but the federal involvement will continue. While Bob Hartwig as the third president said that reinsurance can privatize the program.
“President and CEO of Selective Insurance Co. of America dubious privatization that will happen because Congress does not have support to create a sound actuarial program”, Greg Murphy as chairman. Legislators saw a lot of costs that would be raised because Congress understands that homeowners want a better comfort.