To ensure that Write Your Own companies can sell private flood insurance products that compete with National Flood Insurance Program products.
- Bill Number
- H.R. 5608
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-26: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-12-22T17:32:19Z
AI-Generated Summary
Purpose
This legislation aims to promote competition in the flood insurance market by allowing private insurance companies participating in the National Flood Insurance Program (NFIP) to offer their own private flood insurance products without restrictions from the federal government.
Key Provisions
- Definition of Write Your Own (WYO) Program: Clarifies that the WYO Program is a partnership where the Federal Emergency Management Agency (FEMA) works with private property insurance companies to sell, adjust, and pay flood insurance claims under the NFIP using the companies' own business operations.
- Prohibition on Non-Compete Restrictions: FEMA cannot require WYO companies, insurers, agents, brokers, or adjustment organizations to refrain from selling private flood insurance (defined as non-federal flood coverage under existing law) as a condition for participating in the WYO Program or any other NFIP activities.
- Ban on Future Restrictions: After enactment, FEMA agreements with insurers for WYO participation cannot include clauses that limit the sale of private flood insurance.
Significant Changes to Existing Law
- Amends Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081) by adding a new subsection (f).
- Explicitly removes any implied or explicit non-compete requirements that might have previously limited private insurers' ability to compete directly with NFIP products, fostering a more open market for flood coverage.
Potential Impacts
- On Government Agencies: FEMA's role in the NFIP may shift toward facilitation rather than dominance, potentially reducing its market share while maintaining oversight of partnered insurers.
- On Citizens: Property owners in flood-prone areas could gain access to more affordable or customized private flood insurance options, increasing choice and possibly lowering costs compared to NFIP policies.
- On International Relations: No direct impacts, as the bill focuses on domestic insurance markets.
- Overall, it could enhance market competition, encourage innovation in flood coverage, and reduce financial pressure on the federal NFIP, which has faced debt issues.
Main Stakeholders Affected
- Private Insurers and WYO Companies: Gain freedom to expand offerings, potentially increasing revenue from private products.
- FEMA and NFIP Administrators: Must adjust partnership agreements to avoid restrictive clauses, affecting program operations.
- Insurance Agents, Brokers, and Adjusters: Can promote both NFIP and private options without conflicts.
- Property Owners and Consumers: Benefit from competitive choices in flood insurance, especially in high-risk areas where NFIP coverage is often mandatory for mortgages.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens antitrust-like principles in federal insurance programs by prohibiting anti-competitive conditions, aligning with broader laws promoting free enterprise without altering core NFIP mandates.
- Constitutional: Supports free market principles under the Commerce Clause by enabling interstate insurance competition, with no apparent conflicts to federal authority over disaster programs.
- Political: Encourages privatization in federal services, which could appeal to advocates of reducing government involvement in insurance while addressing criticisms of NFIP's high costs and limited coverage; may spark debates on balancing public risk pools with private sector growth.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Steube, W. Gregory [R-FL-17]
Cosponsors (2)
Rep. Patronis, Jimmy [R-FL-1], Rep. Ezell, Mike [R-MS-4]
Recent Actions
- 2025-09-26: Referred to the House Committee on Financial Services.
- 2025-09-26: Introduced in House
- 2025-09-26: Introduced in House
Bill Versions
- To ensure that Write Your Own companies can sell private flood insurance products that compete with National Flood Insurance Program products. — issued 2025-09-26 — PDF (3 pages)