property is located that adequately reflects the pro-
tection provided by any flood protection system for 
such area, including a pumping station, decertified 
levee, or non-Federal or non-structural flood mitiga-
tion measure, against the 100-year frequency flood, 
without regard to the accreditation status of the 
flood protection system; or 
(2) the community in which such property is lo-
cated elects not to provide the data necessary for the 
Administrator to publish a flood insurance rate map 
or update that adequately reflects the protection 
provided by any flood protection system, including a 
pumping station, decertified levee, or non-Federal or 
non-structural flood mitigation measure. 
SEC. 9. ALTERNATIVE APPROACH FOR ASSESSING AND 
PRICING FLOOD RISK. 
It is the sense of the House of Representatives that— 
(1) there should be established in the House of 
Representatives a Bipartisan Task Force on Innova-
tion in Financing Flood Risk with the primary pur-
pose of compiling data and information on innova-
tive market-based solutions to make flood insurance 
more accessible and affordable for all Americans; 
and 
(2) such Task Force should— 
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(A) consult with flood risk management 
stakeholder groups, insurers, reinsurers, State 
regulators, and financial experts knowledgeable 
and interested in finding innovative new rate 
methodologies and approaches to financing 
flood 
risk, 
including 
insurance 
risk 
securitization; 
(B) compile information on existing risk 
assessment methodologies that— 
(i) identify and standardize broader 
types of risks, hazards, structures, and 
losses, at a granular level, faced by prop-
erty owners and communities, that helps 
investors, buyers, regulators, and policy-
makers finding a methodology to facilitate 
transparency and liquidity while reducing 
risk and increasing asset value through the 
clear reduction of risk uncertainty; 
(ii) encourage transparency in the de-
velopment of Flood Insurance Rate Maps 
that the Federal Emergency Management 
Agency uses to assign risk in flood-risk 
zones; 
(iii) introduce financial or non-finan-
cial risk determination, analysis, and valu-
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ation of individual mortgages and housing 
transactions in a unified approach that in-
cludes engineering structures and environ-
mental risks in the pricing by risk ele-
ments of catastrophe-linked products; 
(iv) integrate different approaches (fi-
nancial, actuarial, and engineering) into 
one pricing framework that complements 
modern flood risk analysis and captures 
potential losses as accurately as possible; 
(v) granulate the risks and value and 
offer risk-differentiated and risk-specific 
solutions so that any differentiated risk 
can be redistributed and diversified in nu-
merous ways; 
(vi) explore transparency indexes that 
link monetary value to risk disclosure; and 
(vii) average national catastrophic in-
sured losses and appropriately assign 
weights and risk values to equitably dis-
tribute catastrophic, all-peril insurance 
risk; 
(C) consider the relationship between new 
transparent, benchmark pricing of flood insur-
ance-linked securitization and structured catas-
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trophe derivatives that integrates engineering, 
financial, and actuarial parameters to reduce 
the cost of mitigating financial losses due to 
floods; 
(D) evaluate options for— 
(i) educating policyholders on methods 
for risk mitigation; 
(ii) integrating policyholder and cap-
ital market participants, including inves-
tors, in the entire risk-financing process to 
demonstrate or feature specific system 
measures that increase asset value; and 
(iii) expressing different ways to 
incentivize both the financial markets and 
the individual market participant to update 
all risk disclosures and risk-remediating 
actions on an individual basis; and 
(E) not later than 180 days after the date 
of the enactment of this Act, report findings, 
options, and recommendations to the House of 
Representatives with regard to the consider-
ation of future flood-risk analysis and risk inno-
vation in pricing. 
Æ 
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