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NFIP Launches Reinsurance Initiative

The Federal Emergency Management Agency has announced an initiative to more actively manage its financial risk by securing reinsurance from the private reinsurance and capital markets...
September 29, 2016

The Federal Emergency Management Agency (FEMA) has announced an initiative to more actively manage its financial risk by securing reinsurance from the private reinsurance and capital markets. The action is in response to direction received from Congress in both the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA 2014).

FEMA created a NFIP Reinsurance Program with the primary objective to enable the Federal Insurance and Mitigation Administration (FIMA) to diversify the tools it uses to manage the financial consequences of its catastrophic flood risk. It will start by acquiring $1 million in reinsurance to prepare for a larger purchase early next year. Details are available in a FEMA blog.