GAO Report Underscores Waters’ Criticism of FEMA’s Compensation Methodology
Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, issued the following statement in response to a report published today by the U.S. Government Accountability Office (GAO) discussing the compensation paid to Write-Your-Own (WYO) companies that administer to the National Flood Insurance Program (NFIP). In 2014, Ranking Member Waters called on the GAO to study federal payments to WYO insurers and how they relate to actual expenses incurred by those insurers.
“As expected, the recent GAO report substantiates my long-standing claim that The Federal Emergency Management Agency’s (FEMA) compensation practices are inadequate. FEMA has yet to comply with the requirements contained in the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act) that would have finally required FEMA to base its compensation to the WYO’s on their actual expenses.
Ranking Member Waters has long been concerned about the transparency and fairness of WYO compensation methodology. As one of the leading authors of the Biggert-Waters Act, she required FEMA to revise its methodology to account for the actual expenses of the WYOs. In July, 2016, she co-led a bipartisan letter asking FEMA to fulfill its legal obligation to provide oversight of the WYOs. The full text of the letter can be found here.