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White House Kills Flood Insurance IT Project

The White House has pulled the plug on a program to automate the processing of flood insurance claims by the National Flood Insurance Program (NFIP),...
December 14, 2010

The White House has pulled the plug on a program to automate the processing of flood insurance claims by the National Flood Insurance Program (NFIP), as part of a review of federal information technology systems.

The Homeland Security Department managed the program. It was killed by the Office of Management and Budget as part of a review of 16 out of 26 federal IT projects. The flood insurance system, which carried a total cost of $101.2 million, was intended to rate flood insurance policies, access claims data and report on insurance delivery.

"DHS halted the project this summer to review if any portions of it were usable, and has determined that it will not be able to meet our needs," said DHS spokeswoman Amy Kudwa. The department has hired an insurance industry executive and is conducting a survey to identify systems already serving companies today, rather than build a custom application from scratch, Homeland Security officials said.

According to a July Homeland Security assessment of the flood IT program, the now-nixed upgrade was supposed to be completed in 2008. The department had been using a 25-year old system for insuring flood victims and now will continue funding and relying on that system until new technology is operable.

Click here to read White House Kills e-Flood Insurance Project (nextgov.com 12/9/10)

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