WASHINGTON — FEMA announced its 2024 traditional reinsurance placement for the National Flood Insurance Program (NFIP), continuing its risk management practice against catastrophic flood losses.
The agency has transferred an additional $619.5 million of the NFIP’s financial risk to the private reinsurance market. This annual reinsurance agreement provides coverage in 2024 through the support of 18 private reinsurance companies.
The 2024 reinsurance placement covers portions of NFIP losses above $7 billion arising from a single qualifying flood event. FEMA will pay a total premium of $121.1 million for the coverage.
The agreement is structured to cover:
8.9125% of losses between $7 billion and $9 billion
22.0625% of losses between $9 billion and $11 billion
Combined with the three capital markets reinsurance placements in 2021-23, FEMA has transferred $1.9195 billion of the NFIP’s flood risk to the private sector. If a named storm flood event is large enough to trigger all reinsurance agreements, FEMA will receive qualifying payments.
“With continued difficult market conditions this year, FEMA remains committed to long-term use of…
