Although Congress reconvened in September, no real progress was made on the NFIP reform bill. Observers say a very full calendar, combined with ongoing differences between the House and Senate versions of the bill, precluded definitive action. One official indicated that it's unlikely anything will occur until next year.

Since NFIP officials say the program currently has enough funds and borrowing authority to see it through the end of the year, any urgency about passing the bill because of a need to increase the NFIP's borrowing authority seems to have been lost. However, if a lame-duck Congressional session is called in mid-November, the NFIP bill could be considered.

There has been a flurry of recent activity related to H.R. 5441, the appropriations bill for the Department of Homeland Security. Lawmakers and agency representatives have attempted to use this bill to make organizational changes in the department related to FEMA. The bill was sent to a joint conference of the House and Senate to work out differences, including the provisions that would promote FEMA's head to the level of deputy secretary, making him a principal advisor to the President and a possible cabinet member in the event of a large-scale natural disaster.

Meanwhile, the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises met Sept. 13 for a hearing to assess the current natural catastrophe insurance marketplace and to look for ways to maximize private-sector capacity. Representatives of several major insurance industry associations presented testimony. Read more....