Government flood data now for sale to private insurers—at your expense

What it does

This bill creates a data-sharing program allowing the National Flood Insurance Program (NFIP) to disclose flood claims and policy information to private insurance companies under signed agreements. Private insurers can use this data to set premiums and adjust claims, but not for marketing. The bill also requires NFIP to provide flood history information to property buyers, renters, and owners upon request, and allows NFIP to charge private insurers fees for access while providing the information free to property owners.

Why we flagged it

The bill's core mechanism is a two-way data exchange: NFIP discloses flood claims and policy data to private insurers (who pay fees), while also mandating disclosure of flood history to property owners (free). The private-insurer access is the operative beneficiary provision; the property-owner disclosure is a transparency mandate.

What the text implies

• Private insurers gain access to NFIP's complete flood claims database at subsidized rates, enabling them to identify and avoid high-risk properties—a form of adverse selection that could degrade NFIP's risk pool and increase premiums for remaining policyholders.
• The bill defines 'insurance company' by reference to section 102(7) of the Flood Disaster Protection Act of 1973, but that definition is not provided in the text; the actual scope of eligible private insurers is opaque.

The full analysis lists 5 implications of this text.

Who stands to gain

Private insurance companies (access to subsidized NFIP flood claims data for underwriting and premiu; Insurance companies meeting Flood Disaster Protection Act section 102(7) criteria (eligible to parti