Tag Archives: FEMA

NFIP reinsurance protection a good thing

From January 1, 2017, FEMA – the Federal Emergency Management Agency – secured increased reinsurance protection to share a meaningful portion of the risk of large and unexpected flooding with private reinsurance markets.

This placement of reinsurance transferred $1.042 billion in risk above a $4 billion deductible to 25 reinsurance companies.

Under this agreement, the reinsurers can cover 26 percent of losses between $4 billion and $8 billion arising from a single flooding event.

As Artemis blog reports here, with flood losses from Hurricanes Harvey and Irma on the rise, estimates suggest that the NFIP reinsurance program will pay out in full with losses from Hurricane Harvey alone.

Per Artemis: “The NFIP reinsurance program is a per-occurrence arrangement, meaning it covers a single loss event.”

Also noted by Artemis at the very end of its blog post, the NFIP reinsurance layer does not have a reinstatement provision.

This means that the NFIP cannot also claim on the program for its losses from Hurricane Irma as a second and separate event.

Nevertheless, it’s a good thing that NFIP secured first event coverage. A reinsurance payment for Hurricane Harvey flood losses will be welcome.

Why year-round storm preparations are key

From Dr. Jeff Masters at Wunderground’s Cat 6 blog:

“Tropical Storm Emily was making landfall just south of Tampa Bay, Florida late Monday morning after spinning into life on Monday morning at 8 am EDT just off the Gulf Coast of Florida.”

And:

“Emily formed so quickly and unexpectedly that the Hurricane Hunters never flew into the storm. It is very unusual for a named storm to make landfall in the U.S. without the Hurricane Hunters ever sampling the storm.”

Emily is expected to move inland this afternoon and across central Florida tonight.

A good example of why preparation for tropical storms, hurricanes and other severe weather needs to be a year-round priority.

Check out FEMA’s https://www.ready.gov

At 11:45 a.m. EDT (1545 UTC) NOAA’s GOES-East satellite captured a visible image of Emily: