The Senate passed revised legislation Thursday that would delay increases in flood insurance premiums, following the House's vote advancing the bill last week.

The bill, which will now go to President Obama's desk for his signature, is intended to limit the effects of price increases resulting from 2012 reforms to the National Flood Insurance Program.

This could reduce the amout of flood-related risk that is shifted to the private sector, either in the form of traditional insurance and reinsurance and insurance-linked structured products such as catastrophe bonds.

The legislation, which the Senate passed by a vote of 72 to 22, would reinstate the grandfathering of premiums for certain homes subject to earlier flood maps, lower a cap on premium increases to 15% and allow refunds for excess premiums paid under the 2012 reforms, among other provisions.

"This important bill, crafted by leaders on both sides of the Capitol and both sides of the political aisle, addresses National Flood Insurance Program affordability issues and corrects other unintended consequences resulting from earlier reform efforts," American Bankers Association chief executive Frank Keating said in a press release.

The Senate's action followed a 306-to-91 vote by the House last week to move the legislation. The House passed the bill despite successful efforts by GOP leaders in the chamber to block an earlier bill — that had originated in the Senate — that also sought to delay the premium increases.

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