In this edition:
- An option for making flood insurance affordable
- An upcoming event on international climate commitments, in advance of Paris
Flood Insurance Rates Increase
On April 1, rates under the National Flood Insurance Program (NFIP) increased in an effort to “align the cost of insurance with the actual flood risk.” Although many homeowners saw little to no increase, those who live in flood-prone areas can face premiums that are “more than the actual mortgage” of the home.
In recent research, RFF’s Carolyn Kousky and Howard Kunreuther of the Wharton Risk Management and Decision Processes Center propose one possible solution: “a voucher program based on a policyholder’s ability to pay in order to put flood insurance within reach for those at high risk.” In related work, Kousky outlines “four key issues that should be considered in further NFIP reform.”
US and International Climate Commitments
Last week, the Obama administration pledged to reduce US greenhouse gas emissions by 28 percent over the next decade—a commitment submitted to the United Nations as part of a new climate agreement to be negotiated later this year.
On April 21, RFF, the Embassy of Sweden, and the Mistra Indigo research program will host a special policy dialogue to examine what the pledges from the world’s three largest economies—the United States, the European Union, and China—might signal for the climate negotiations in Paris. Register for “Looking Ahead toward Paris: International Perspectives on National Commitments,” to be held at the Embassy of Sweden.
