Texas floods highlight need to reform key insurance program

Program that provides insurance to property owners across the US, is more than US$20 bn in debt

Torrential storms have been coursing through much of Texas in recent days, prompting massive flash flooding that has swept away entire homes and left wakes of devastation.

Floodwaters continue to rise, so it will be days if not weeks before we can calculate the final costs, both in terms of life and property. But regardless, many will be turning to the federal government’s National Flood Insurance Program (NFIP) for help – it’s the only way to insure a property against damage from flooding. Unfortunately, it’s broke – and its very nature encourages development that makes each flood more