FEMA hires actuaries to reprice flood risk for the first time in decades

The US government is paying a private company to recalculate the risk of flooding across the country. This means flood insurance premiums will soon reflect actual flood risk, rather than outdated estimates.

For decades, the US government subsidized flood insurance, keeping premiums artificially low. This meant people built homes in risky areas without paying the true cost of that risk. This contract signals a shift towards market-based pricing, which will make building in flood zones more expensive.