FEMA has returned to the capital markets and ILS investors with a $300 million FloodSmart Re Ltd. (Series 2019-1), seeking support for its second flood catastrophe bond to transfer risk from the National Flood Insurance Program (NFIP).
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The first flood catastrophe bond, sponsored by the U.S. Federal Emergency Management Agency (FEMA) to transfer risk from the National Flood Insurance Program’s (NFIP) risk to the capital markets, was a “very significant” transaction for the ILS market, according to Fermat Capital Management’s John Seo.
The U.S. Federal Emergency Management Agency (FEMA) has launched its awaited first catastrophe bond to transfer risk from the National Flood Insurance Program (NFIP) to the capital markets and is seeking $275 million of reinsurance protection from a FloodSmart Re Ltd. (Series 2018-1) issuance.
The U.S. Federal Emergency Management Agency (FEMA) has confirmed its intention to enter the insurance-linked securities (ILS) market for the first time for a mid-year 2018 transfer of risk from the National Flood Insurance Program (NFIP), to secure capital markets backed source of flood reinsurance using a catastrophe bond.
One of the bills calling for the use of catastrophe bonds, collateralized reinsurance and other private market risk transfer tools to lower the risk held by the U.S. National Flood Insurance Program (NFIP) will now be heard before a Senate committee.
A number of bills aimed at reforming the U.S. National Flood Insurance Program (NFIP), in order to make it a more sustainable system and to factor in more private market insurance and risk transfer, have been passed by the House Financial Services Committee and will now move onto the full House of Representatives for deliberation.
As the National Flood Insurance Program (NFIP) increasingly looks to risk capital, from traditional reinsurance and in the future capital markets, in order to de-risk itself and better protect the taxpayers who ultimately back it, it’s perhaps more likely we see ILS structures in the form of a sidecar than a flood catastrophe bond, S&P […]
A newly proposed draft piece of legislation which calls for the National Flood Insurance Program (NFIP) to be reauthorised for a 10 year period also clarifies the authority of the administrator FEMA to issue flood catastrophe bonds.
We’ve written a lot about the potential for flood risks to be structured and sold as catastrophe bonds on Artemis. You can read some of our more recent articles on this topic here and here. Still there is no sign in the cat bond pipeline of anyone putting together a flood cat bond but we’re […]
Floods are the most common natural catastrophe worldwide according to a new paper from insurance and financial services group Allianz. During 2010 the International Disaster Database EM-DAT collected data on approximately 400 natural catastrophes with at least 100 people affected or 10 deaths, of these 182 cases were caused by flooding affecting 179m people worldwide.