Measuring the Impacts of the National Flood Insurance Program

12 Pages Posted: 13 Mar 2012

See all articles by James P. Howard, II

James P. Howard, II

Johns Hopkins Applied Physics Laboratory

Date Written: March 23, 2012


The National Flood Insurance Program was established in 1968 as a federally administered insurance program to reduce costs to the federal government for flood recovery and allocate recovery costs among potential disaster relief beneficiaries. Participants purchase flood insurance through participating property insurance providers which receive a haircut of the premium for overhead costs and passes the remainder to the Federal Emergency Management Agency. This paper outlines a model to measure the net social benefits attributable to the insurance component of the NFIP. Development of this model provides the baseline for further economic and social analysis of the NFIP.

Keywords: flood insurance, disaster management, benefit-cost analysis, social surplus, risk management

JEL Classification: H84, D63, H43

Suggested Citation

Howard, James, Measuring the Impacts of the National Flood Insurance Program (March 23, 2012). Available at SSRN: or

James Howard (Contact Author)

Johns Hopkins Applied Physics Laboratory ( email )

11100 Johns Hopkins Road
Laurel, MD 20723
United States
2405920219 (Phone)
20723 (Fax)

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