Kennedy Expresses Concern About FEMA Flood Insurance and Increase in Costs – Press Releases

Watch the Kennedy exchange here.

WASHINGTON – Senator John F. Kennedy (R-La.) Today questioned witnesses at a Senate banking hearing on FEMA’s Risk Assessment Plan 2.0 and why FEMA refuses to allow Congress or other stakeholders to see the algorithm FEMA has implemented. for holders of flood insurance.

Risk Assessment 2.0 introduced the biggest change in the history of the way the National Flood Insurance Program (NFIP) calculates flood insurance premiums. Risk Assessment 2.0 significantly increases Louisiana flood insurance premiums that depend on the NFIP to protect their homes from natural disasters.

Key comments from Kennedy’s interview include:

Kennedy: “Dr. Van Doren, Mr. Theodore, have any of your think tanks hired an external expert to review the algorithm used by FEMA to set these new tariffs? Have any of you done that? . . . Why not? . . . How do you know they’re accurate? You do not know that they are accurate, because FEMA will not show them to you. If I’m talking about Milliman, I’m talking about a company – last year it had about $ 1.2 billion in revenue, 4,000 employees. They are risk management experts. They represent large institutions, mainly insurance companies. Milliman designed this algorithm, didn’t he?

Theodore: “This is my understanding of what Miliman did. I reviewed. . ”

Kennedy: “. . . Who owns the algorithm? Does Miliman own it? Or does FEMA own it? Are you both experts? You know?”

Theodore: “I’d say it is, it’s NFIP.”

Kennedy: “Do you really know that?”

Theodore: “I don’t know for sure.”

Kennedy: “And you don’t know that, because FEMA will not share this algorithm with anyone. They tell you, “If we show it to you, we have to kill you.” They won’t even show it to Congress. But we must still have blind trust in the federal government. What can go wrong?

. . .

Kennedy: “. . . they will not show anyone their algorithm. And if you trust the government, Mr. Theodore, especially on this program, you have failed in history lessons. Now, that’s not right. I want to see this program fixed. ”

. . .

Kennedy: “Why is FEMA, Mr. Quinn, constantly hiring these lawyers and engineers who act like thieves?” How much did US Forensic win from FEMA last year?

Queen: “I don’t know, but I know they are doing very, very well, as is the Nielsen law firm. And they get pretty well paid for committing or supporting fraud, sir.

Kennedy: “And they get paid for not paying receivables, not paying them, right?”

Queen: “This is true.”

Kennedy: “Why does FEMA keep doing this?”

Queen: “It simply came to our notice then. FEMA told us that they have no way to remove these scammers from the program. . . . I can’t imagine how much ruin these organizations make in the communities. I have personally experienced it. I saw him in Louisiana Bay. I’ve seen it all over America. “

Dr. Peter Van Doren is a Senior Fellow at the Cato Institute.

Jerry Theodoru is director of the finance, insurance and trade policy program at the R Street Institute.

Douglas Quinn is the executive director of the American Policies Association.


  • On February 14, Kennedy called on President Joe Biden to suspend the implementation of risk assessment 2.0.
  • On September 22, 2021, Kennedy pressured FEMA Administrator Dean Chriswell to postpone the implementation of Risk Assessment 2.0.
  • On June 7, 2021, Kennedy introduced the Flood Insurance Equity Act to stop the Biden administration from making unilateral changes to the NFIP, including a risk rating of 2.0.
  • On April 15, 2021, Kennedy called on Senate Banking Committee Chairman Sherrod Brown (Ohio) to hold a hearing to consider a risk rating of 2.0.

Watch the Kennedy exchange here.

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