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Measuring the impacts of the national flood insurance program

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  • Howard II., James P.

Abstract

The National Flood Insurance Program was established in 1968 as a federally administered insurance program to reduce costs to the federal government for flood recovery and allocate recovery costs among potential disaster relief beneficiaries. Participants purchase flood insurance through participating property insurance providers which receive a haircut of the premium for overhead costs and passes the remainder to the Federal Emergency Management Agency. This paper outlines a model to measure the net social benefits attributable to the insurance component of the NFIP. Development of this model provides the baseline for further economic and social analysis of the NFIP.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37758.

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Date of creation: 22 Mar 2012
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Handle: RePEc:pra:mprapa:37758

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Keywords: flood insurance; disaster management; benefit-cost analysis; social surplus; risk management;

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  1. Chetty, Nadarajan, 2009. "Sufficient Statistics for Welfare Analysis: A Bridge Between Structural and Reduced-Form Methods," Scholarly Articles 9748528, Harvard University Department of Economics.
  2. David Moss, 1999. "Courting Disaster? The Transformation of Federal Disaster Policy since 1803," NBER Chapters, in: The Financing of Catastrophe Risk, pages 307-362 National Bureau of Economic Research, Inc.
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