WASHINGTON (KLFY) – Sen. John Kennedy (R-La.) has urged the Federal Emergency Management Agency (FEMA) to explain how it is implementing its new method of calculating flood insurance premiums, known as Risk Rating 2.0.
FEMA’s new algorithm has sent the rates of many National Flood Insurance Program policyholders in Louisiana skyrocketing, Kennedy said. He said FEMA has yet to clarify how it determines new rates.
“It doesn’t do any good to offer flood insurance if people can’t afford it, and that’s what
FEMA’s doing right now,” Kennedy said.
Kennedy said there is no transparency with Risk Rating 2.0.
“People have absolutely no idea — members of the United States Congress have no idea — how this algorithm works and how they come up with a specific price for every home in America,” he said. “But I’ll tell you what we do know: All the prices have gone up.”
View Kennedy’s full remarks here.