Environmental groups have strong objections to the National Flood Insurance Program (NFIP) because it encourages development in fragile coastal environments. This testimony also mentions the proposed Multiple Peril Insurance Act which create a wind insurance program like the NFIP. Environmental groups oppose this because it would just make it even cheaper to live in high risk areas. Private insurers and re-insurers oppose it because it drive them out of a functioning insurance market.
Testimony of David R. Conrad Senior Water Resources Specialist National Wildlife Federation Regarding Legislative Proposals to Reform the National Flood Insurance Program Before the Subcommittee on Housing and Community Opportunity House Committee on Financial Services U.S. House of Representatives April 21, 2010.