FEMA Places Reinsurance Coverage for the NFIP

WASHINGTON, Jan. 8 -- The Reinsurance Association of America issued the following news release:

For the second year, the Federal Emergency Management Administration (FEMA) has completed placement of reinsurance coverage--$1.46 billion, an increase over the $1.0 billion placement in 2017--to help manage the financial burden of the National Flood Insurance Program's catastrophic flood risk. 28 reinsurers participated in the placement, up from 25 last year.

Frank Nutter, president of the Reinsurance Association of America, said, "The RAA has long advocated for the NFIP to utilize private reinsurance, and the successful placement of this reinsurance coverage for the second year is a significant milestone. The placement confirms FEMA's commitment to expanding reinsurance coverage and the financial protections it will afford taxpayers."

Read more about the placement (https://www.fema.gov/nfip-reinsurance-program)