The National Flood Insurance Program (NFIP) secures “property catastrophe per occurrence excess of loss” reinsurance. There are many different types of reinsurance. Similar to insurance for your home, reinsurance acts as a safety net by transferring risk to another party. In exchange, reinsurers provide coverage for losses incurred by insurance providers up to a specified amount negotiated by both parties. Insurance providers, such as the National Flood Insurance Program, pay premiums to reinsurers. In other words, reinsurance is insurance for insurance companies. Reinsurance is an important risk management tool used by insurance companies to protect themselves from large financial losses.
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Read more about the Trade Agreement Announcement notice of intended reinsurance procurement and how to submit a request for participation on this informational fact sheet. This traditional reinsurance placement is in effect from Jan. The Reinsurance Program transfers financial flood risk to private markets to help strengthen the financial framework of the National Flood Insurance Program. Public Notice of FEMA’s Intended Procurement of Reinsurance 2023įEMA is continuing its reinsurance program and secured a new reinsurance placement in January 2023.
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