The Federal Emergency Administration Company (FEMA) stated its reinsurance renewal for the Nationwide Flood Insurance coverage Program (NFIP) included the switch of almost $758 million to the personal market via using 27 reinsurance firms – up from 18 firms a 12 months in the past.
Elizabeth Asche, FEMA’s assistant administrator for federal insurance coverage and senior government of NFIP stated the company’s use of extra reinsurers strengthened its “dedication to make use of personal sector reinsurance to boost the NFIP’s skill to pay flood insurance coverage claims.”
FEMA used Man Carpenter to offer dealer companies in the course of the renewal course of.
The 2025 reinsurance placement covers parts of NFIP losses above $7 billion from a single qualifying flood occasion. FEMA pays complete premium of about $140 million for the protection.
The settlement is structured to cowl:
- about 12% of losses between $7 billion and $9 billion
- about 26% of losses between $9 billion and $11 billion
Mixed with the three capital markets reinsurance placements in 2022, 2023 and 2024, FEMA stated it has transferred about $2.1 billion of the NFIP’s flood threat to the personal sector. If a named storm flood occasion is massive sufficient to set off all reinsurance agreements, FEMA will obtain qualifying funds.
Supply: FEMA
Matters
USA
Flood
Reinsurance
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