THE NATIONAL FLOOD INSURANCE PROGRAM: IS IT FINANCIALLY SOUND?

This article uses data provided by the Federal Emergency Management Agency, which implements the NFIP, to estimate the difference between annual premiums and expected costs associated for the program as a whole and for inland and coastal regions. In addition, we examine the role of discounts, cross-subsidies, and FEMA's method of setting what it considers to be full-risk rates in explaining the outcomes that we observe.