An Act relative to an investigation to review flood insurance rates

194th Legislature (2025-2026) Introduced by Bruce Ayers

Requires Massachusetts to conduct biennial reviews of NFIP flood insurance rates to assess affordability, sustainability, and risk alignment, with public reports to lawmakers.

Accompanied H1084

Overview

H.1085, introduced February 27, 2025 under the sponsorship of Representative Bruce J. Ayers (1st Norfolk), is paired with H1084 and directs the state Commissioner of the Division of Insurance to conduct a biennial investigation into flood insurance rates set by the National Flood Insurance Program (NFIP). The bill aims to assess affordability, program sustainability, and whether premiums accurately reflect risk, with findings published publicly and submitted to the clerks of the Massachusetts House and Senate.

Key Provisions

Biennial investigation mandate: The Commissioner of the Division of Insurance shall conduct a formal review every two years of flood insurance rates under the NFIP.

Focus areas:

Affordability of flood insurance for homeowners and business owners in Massachusetts.
Sustainability of the NFIP program.
Alignment of premiums with actual risk of loss.

Public reporting and transparency: Each biennial report must be made available to the public.

Submission to Legislature: The report must be submitted to the clerks of the Massachusetts House of Representatives and Senate.

Statutory change: Adds a new paragraph to Section 102D of Chapter 175A of the General Laws (as appearing in the 2014 Official Edition).

Affected Parties

Directly affected: Massachusetts homeowners, renters with flood insurance considerations, small business owners, and other NFIP policyholders within the state.

Indirectly affected: Insurance carriers and the Division of Insurance, which would be responsible for conducting and communicating the biennial investigations.

Public access: Reports are public-facing, increasing transparency around flood insurance pricing and risk assessment.

Procedural and Timeline Notes

Introduced: February 27, 2025.

Status: Accompanied by House Bill 1084 (a companion measure); House and Senate actions noted in the record.

Committee action: Referred to the Committee on Financial Services on February 27, 2025.

Hearing: A hearing was scheduled for May 13, 2025 (10:00 AM–1:00 PM) in hearing room A-2.

Legislative actions:

2025-02-27: Senate concurred (per the record).
2025-11-19: Accompanied H.1084 (indicating continued cross-reference with the companion measure).

Related measures: Similar matter previously filed as House Docket No. 931 in the 2023-2024 session; H.1085 is listed as replacing/relating to that prior filing.

Context and Implications

The bill does not set premiums or rates itself but seeks independent, state-level oversight of NFIP pricing to evaluate affordability and risk alignment.

By requiring public access to the reports, the measure enhances transparency around how flood insurance premiums relate to the probability and severity of flood losses in Massachusetts.

If enacted, Massachusetts would gain biennial, data-informed insights into the NFIP’s performance from a state perspective, potentially informing state advocacy or federal policy discussions on flood insurance reform.

Bottom Line

H.1085 proposes a structured, periodic review of NFIP flood insurance rates by the Massachusetts Division of Insurance, focusing on affordability, sustainability, and risk-based pricing, with public reporting and legislative transmission. It aligns with ongoing efforts to scrutinize flood risk pricing while keeping state residents informed.

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