The agency had earlier asked Brown to reconsider his order, saying it unjustly suggested systemic misconduct by all engineering firms.
Patrick Linehan, a Travelers spokesman, said in an e-mail today that the insurer takes the allegations against its unit “very seriously.” He declined to comment further citing the pending litigation.
Dolores Glass, a spokeswoman for Wright, had no immediate comment.
Thomas Hambrick, a spokesman for Connecticut-based Hartford, declined to comment. He said last week that the company denies the charges and would seek dismissal of the claims.
In his letter Dec. 5, Fugate said the agency will undertake a “careful joint examination” of the reports and the private companies’ claims adjustment processes to “restore the public’s faith” in the flood insurance program.
“Concerns that there may be systemic incentives to undervalue claims warrant considered and deliberate discussion” among the agency, the insurers and lawmakers, Fugate said.
“In particular, we must ensure that claims adjustment practices designed to prevent over-payments are not also incentivizing under payments,” he said.
About 1,500 flood claims from Sandy remain in litigation, according to Fugate. The program has paid more than $8.1 billion to policyholders for damages from the storm, he said.
The case is In Re Hurricane Sandy Cases, 1:14-mc-00041, U.S. District Court, Eastern District of New York (Brooklyn).