Reinsurance News
NFIP
Lawmakers push for NFIP to cede more risk to reinsurers
18th January 2019
U.S lawmakers have reintroduced a bill that pushes for the National Flood Insurance Program (NFIP) to cede more of its risk to the private reinsurance market. The Taxpayer Exposure Mitigation Act is one of four bills introduced by Missouri Congressman Blaine Luetkemeyer that calls for improvements to the Federal Emergency Management Agency’s ... Read the full article
U.S Congress extends NFIP funding by five months
24th December 2018
U.S Congress has approved a short-term extension for the government-backed National Flood Insurance Program (NFIP) for the tenth time in 15 months, authorising it until 31 May 2019. It’s been a busy 2018 for the NFIP; hurricane Michael, which tore into the Florida Panhandle with high-end category four wind speeds ... Read the full article
FEMA confident of NFIP reauthorisation
21st November 2018
With the current statutory authority granted to the National Flood Insurance Program (NFIP) set to expire at 11:59PM on 30 November 2018, The U.S Federal Emergency Management Agency (FEMA) has stated that it is confident Congress will vote to reauthorise the program. It’s been a busy two quarters for the NFIP; ... Read the full article
NFIP’s 2019 flood reinsurance renewal process begins
2nd November 2018
The U.S Federal Emergency Management Agency (FEMA) has begun the 2019 reinsurance program renewal process for its National Flood Insurance Program (NFIP), with the possibility of a multi-year deal being sought. FEMA first entered the reinsurance market in 2016 with $1 million of flood protection running from 19 September 2016 to ... Read the full article
Insured Florence losses as high as $5bn: RMS
25th September 2018
Global catastrophe risk modeller RMS estimates an insured loss from hurricane Florence of between $2.8 billion and $5 billion; a figure that includes a $800 million to $1.2 billion loss for the National Flood Insurance Program. The estimate includes losses associated with wind, storm surge, and inland flood damage across North ... Read the full article
NFIP will absorb majority of Florence losses, says Fitch
20th September 2018
Traditional reinsurers and insurance-linked securities (ILS) markets are expected to experience only modest levels of losses from Hurricane Florence, with the majority likely to be absorbed by the National Flood Insurance Program (NFIP), according to Fitch Ratings. Florence weakened to a Category 1 hurricane as it approached the U.S coast last ... Read the full article
Just 15% – 20% of Florence exposure might be passed to reinsurers: Analysts
14th September 2018
Examining the distribution of losses from 2017 hurricanes, combined with looking at the market structure and penetration, the National Flood Insurance Program (NFIP) and state windstorm pools, suggests reinsurers might only assume 15% to 20% of the hurricane Florence exposure, based on a $10 billion insured loss. As the storm continues ... Read the full article
Carriers sufficiently reinsured to withstand Hurricane Lane losses: A.M. Best
29th August 2018
Insurance carriers operating in Hawaii have sufficient capital and appropriate reinsurance programs in place to effectively absorb losses resulting from Hurricane Lane, which battered Hawaii with floods and landslides last week, according to A.M. Best. While Hurricane Lane never quite made direct landfall on Hawaii, it brought over 50 inches ... Read the full article
FEMA completes $500mn NFIP cat bond reinsurance deal
1st August 2018
The Federal Emergency Management Agency (FEMA) has successfully secured $500 million of reinsurance for the National Flood Insurance Program (NFIP) from the capital markets with the issuance of its FloodSmart Re 2018-1 catastrophe bond. The transaction, which was backed by more than 35 capital markets investors, significantly expands FEMA’s reinsurance program, ... Read the full article
FEMA increases NFIP cat bond reinsurance value to $500mn
26th July 2018
The U.S Federal Emergency Management Agency (FEMA) has significantly increased the scope of the capital markets reinsurance that it has secured for the National Flood Insurance Program (NFIP) via the issuance of its first catastrophe bond to $500 million. Issued via FloodSmart Re, a Bermuda domiciled special purpose insurance vehicle, Read the full article
FEMA launches first NFIP cat bond via FloodSmart Re
19th July 2018
The U.S Federal Emergency Management Agency (FEMA) has launched its first catastrophe bond to transfer risk from the National Flood Insurance Program (NFIP) to the capital markets. Issued via FloodSmart Re, a Bermuda domiciled special purpose insurance vehicle, the catastrophe bond will attempt to secure $275 million of reinsurance protection for ... Read the full article
FEMA taps capital markets for flood reinsurance for first time
16th July 2018
The U.S. Federal Emergency Management Agency (FEMA) is to use the capital markets for the first time for reinsurance protection, with the launch of a $275 million FloodSmart Re Ltd. (Series 2018-1) catastrophe bond to transfer risk from the National Flood Insurance Program (NFIP). Domiciled in Bermuda as a special ... Read the full article
Congress considers bill to expand FEMA’s re/insurance cover
15th June 2018
The U.S Congress is considering enacting a new bill that would require the United States Federal Emergency Management Agency (FEMA) to purchase more insurance, reinsurance, and capital market tools for a broader range of disaster-related costs. FEMA already uses a reinsurance program to cover some of the flood insurance risks held ... Read the full article
FEMA to transfer National Flood Insurance Program risk to capital markets
4th April 2018
The Federal Emergency Management Agency (FEMA) has announced plans to de-risk the U.S National Flood Insurance Program (NFIP) with additional reinsurance by engaging the capital markets through an insurance-linked securities (ILS) transaction scheduled for July 2018. FEMA claims this new ‘building block’ will allow it to transfer risk through both traditional ... Read the full article
FEMA reportedly planning mid-year NFIP reinsurance placement: Artemis
5th March 2018
Artemis has reported that 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), as it looks to expand the reinsurance program it started last year. During a keynote speech at the SIFMA IRLS 2018 conference in Miami, Roy E. ... Read the full article
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