FEMA Offers $1.3B in 2020 Reinsurance for Flood Insurance

​Effective Jan. 1, for the fourth consecutive year, FEMA secured $1.33 billion in reinsurance to cover qualifying flood loss under the National Flood Insurance Program (NFIP) ahead of the 2020 hurricane season. This placement complements NFIP’s existing capital markets placements, and it continues FEMA's risk management practice against future catastrophic flood losses.
 
In the 2020 Reinsurance Agreement, 27 reinsurance companies agreed to compensate FEMA for flood losses from qualifying flood events between $4 and $10 billion. FEMA paid a total premium of $205 million for the coverage.
 
For additional information about the 2020 reinsurance placement, visit the FEMA website.
 
The National Flood Insurance Program Reinsurance Program helps FEMA to promote private sector participation in flood-risk management. Since previous reinsurance placements beginning in August 2018, FEMA has completed the transfer of $2.13 billion of the NFIP flood risk to the private sector.