NFIP Is Privately Reinsuring
Thursday, September 29th, 2016 Catastrophe PropertyThe flooding program under FEMA is working to transfer a huge amount of its risk to the private sector. The Federal Emergency Management Agency has now purchased reinsurance from private companies for its National Flood Insurance Program. The agreements officially became effective on September 19, 2016 and will continue coverage through March 19, 2017. That said, they have indicated intentions to purchase more coverage next year. The coverage has been purchased through Swiss Re America Corp., Transatlantic Reinsurance Co., and Munich Reinsurance America Inc.
To reinsure the National Flood Insurance Program, FEMA entered into a contract with a Marsh & McLennan subsidiary, Guy Carpenter and Co. That firm provided brokerage assistance in obtaining the reinsurance agreements.
