Deductible / Premium = 2%
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
FEMA Transfers $758M in US Flood Program Risk to 27 Private Reinsurers
January 21, 2025
The Federal Emergency Management Agency (FEMA) said its reinsurance renewal for the National Flood Insurance Program (NFIP) included the transfer of nearly $758 million to the private market through the use of 27 reinsurance companies – up from 18 companies a year ago.
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