FEMA Transfers $758M in US Flood Program Risk to 27 Private Reinsurers

January 21, 2025

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Elizabeth Asche, FEMA’s assistant administrator for federal insurance and senior executive of NFIP said the agency’s use of more reinsurers strengthened its “commitment to use private sector reinsurance to enhance the NFIP’s ability to pay flood insurance claims.”

FEMA used Guy Carpenter to provide broker services during the renewal process.

The 2025 reinsurance placement covers portions of NFIP losses above $7 billion from a single qualifying flood event. FEMA will pay total premium of about $140 million for the coverage.

The agreement is structured to cover:

  • about 12% of losses between $7 billion and $9 billion
  • about 26% of losses between $9 billion and $11 billion

Combined with the three capital markets reinsurance placements in 2022, 2023 and 2024, FEMA said it has transferred about $2.1 billion of the NFIP’s flood risk to the private sector. If a named storm flood event is large enough to trigger all reinsurance agreements, FEMA will receive qualifying payments.

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