Understanding Risk and Responsibility through the NFIP Reform Process

Mon. 2:00-3:30 p.m., Centennial F

The Federal Emergency Management Agency has chosen a process to reform the National Flood Insurance Program involving an unusual degree of dialogue with and between stakeholders. Considering the program's immediate financial and political outlook, something undoubtedly needs to be done. But does the NFIP deserve the abuse it often takes during that dialogue? Common refrains are that the NFIP encourages risky behavior and unfairly distributes the cost of that behavior to others. But is there actual research about the NFIP changing people's behavior in "bad" ways, and if so, whose behavior was changed, what made that "bad," and who exactly bore what costs? Because the NFIP is not just an insurer, but a longstanding national experiment in risk redistribution, communication, and mitigation, it's important to separate anecdote from fact.

Panelists will discuss what is actually known about behavioral change and the NFIP, and will consider the program's changing political, economic, and social context—including changing notions of our responsibility to one another and our environment. The goal will be to discuss not only what might make sense for the future of the U.S. flood insurance, but what we can learn about hazard risk pooling and redistribution in today's political, economic, and rapidly changing physical climate.

Jo Ann Howard, Moderator
H2O Partners

Michael Lindell, Panelist
Texas A&M University Hazard Reduction and Recovery Center

Roy Wright, Panelist
FEMA

Andy Castaldi, Panelist
Swiss Re

Jeffrey Czajkowski, Panelist
Wharton Risk Management and Decision Processes Center