flood cat bond

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.

The U.S. Federal Emergency Management Agency (FEMA) is planning for a potential mid-year 2018 reinsurance placement for the National Flood Insurance Program (NFIP) and is actively exploring ILS options, as it continues to commit to expanding the reinsurance program it began in 2017.

The tail risk that is inherent in the flood peril is one of the reasons the U.S. government has a role in flood insurance and reinsurance, but in time that tail risk could be displaced with the help of both traditional and alternative capital, according to Chubb CEO Evan Greenberg.

The U.S. Federal Emergency Management Agency (FEMA) has secured a 2018 flood reinsurance program, increasing the amount of coverage for the National Flood Insurance Program (NFIP) by 40% to $1.46 billion of protection, secured from a panel of 28 private market reinsurers.

The U.S. Federal Emergency Management Agency (FEMA) has begun the process of collecting on its 2017 reinsurance program, after claims from hurricane Harvey’s flooding after surpassing its retention due to the impact of the storm and anticipates recovering the full $1.024 billion from its 25 reinsurers.

Progress has been made in the mission to reauthorise and reform the National Flood Insurance Program (NFIP), with H.R. 2874, also known as the 21st Century Flood Reform Act having now passed the House of Representatives with full approval, including amendments by substitution ensuring measures on reinsurance, risk transfer and flood ILS or cat bonds […]

The U.S. Federal Emergency Management Agency (FEMA) has started the procurement process for a 2018 flood reinsurance program renewal for the National Flood Insurance Program (NFIP), as it seeks to transition gradually towards a multi-year approach to use of reinsurance coverage.

Estimates of losses to the National Flood Insurance Program (NFIP) from hurricanes Harvey and Irma’s flooding are on the rise, leaving the NFIP’s administrators with the difficult task of refunding the Program which is technically bankrupt and all but guaranteeing that the $1.024 billion reinsurance layer will payout.

The insurance-linked securities (ILS) market and providers of capital market backed reinsurance capacity can help with the job of narrowing the flood risk protection gap in the wake of hurricane Harvey, according to Rick Miller Managing Director – Co-Head of Insurance Linked Securities at Jardine Lloyd Thompson Capital Markets.

As early estimates of damages from hurricane Harvey point towards an overall economic impact in the low tens of billions of dollars with flooding likely to have caused the majority, the National Flood Insurance Program’s (NFIP) reinsurance layer looks increasingly at risk of paying out.