FEMA Taps 28 Reinsurers for NFIP
The Federal Emergency Management Agency has returned to the reinsurance market to back the National Flood Insurance Program (NFIP), tapping 28 reinsurers for a $1.32 billion program, FEMA said in a statement. The one-year term became effective Jan. 1 and covers portions of NFIP losses above $4 billion arising from a single flood event, the statement said, adding FEMA paid a total premium of $186 million for the coverage.
Once that threshold is reached, reinsurance will cover 14% of losses between $4 billion and $6 billion, 25.6% of losses between $6 billion and $8 billion, and 26.6% of losses between $8 billion and $10 billion, the statement said. The agency’s combined transfer of the NFIP’s flood risk for the 2019 hurricane season to the private sector now totals $1.82 billion.