The authors, in an effort to report on the progress of the National Flood Insurance program, interviewed knowledgeable people in all levels of government, insurance and housing industries, and the public. Responses of the sources were analyzed in terms of implications for land use and control, tax revenues, property values and employment. Based on this analysis, the authors conclude that despite the problems and inadequacies, the program affords the potential for reduction in loss of life and property damage caused by flood, as a result of the long-term adjustments in land use. It also offers the possibility of a more efficient and equitable method of dealing with flood losses than charity or disaster relief programs. Further, it affords an opportunity for development of economically sound flood and other disaster insurance by the private insurance industry alone. Annually, floods in the United States cause the death of many persons and extensive property damage despite increasingly sophisticated weather forecasting methods and flood warning and control measures. Floods occur in rather well defined local areas, but with considerable variation from year to year in frequency of occurrence and magnitude of damage. Because of these characteristics of floods and their catastrophic financial consequences for many flood victims, the feasiRobert S. Felton, D.B.A., C.L.U., C.P.C.U., is Pan-American Life Insurance Research Professor at Louisiana State University in Baton Rouge. William K. Ghee, Ph.D., C.L.U., C.P.C.U., is Associate Professor of Finance and Insurance at Virginia Polytechnic Institute and State University. John E. Stinton, D.B.A., C.L.U., is Professor of Business Administration at the University of South Carolina. This study was made possible by a research grant from the American Risk and Insurance Association. The authors wish to thank the Association for its financial assistance and the many people who provided information for this study. This paper was presented at the 1970 Annual Meeting of A.R.I.A. bility of flood insurance has often been suggested. Interest in flood insurance was particularly intense following disastrous floods in 1951, 1955, and 1961, and the Alaska earthquake and flood in 1964. Hurricane Betsy in September 19-65 provided the final impetus for legislation' which directed the Secretary of the Department of Housing and Urban Development to undertake a study of various programs which might be established to help provide financial assistance to those suffering property losses caused by floods and other natural disasters. The Department then conducted an extensive study of the subject under the direction of Dr. Marion Clawson. This study2 was completed and forwarded to the President and to Congress in 1966. On August 1, 1968, Congress enacted the National Flood Insur' Section 5 of the Southeast Hurricane Disaster Relief Act of 1965 (Public Law 89-339). 2 U.S. Senate Committee on Banking and Currency, 89th Congress, Insurance and Other Programs for Financial Assistance to Flood Vicims (Washington, D.C.: U.S. Govermment Printing Office, 1966).