NFIP Extended Another Four Months
PIA issued a statement saying we are pleased that Congress did not let the
National Flood Insurance Program (NFIP) expire. On July 31, 2018 the U.S. Senate
joined the House in passing a four-month extension of the NFIP, through
November 30, 2018. It was the latest in a string of short term extensions.
President Trump quickly signed the bill.
"Millions of Americans woke up this morning not knowing whether congressional
inaction would leave the flood insurance program they rely on hobbled in the
height of hurricane season," said PIA National Vice President of Government
Relations Jon Gentile. "The passage of a clean extension by the House and Senate
is positive. That said, waiting until the last minute to act should be a thing of
the past. Congress now has four months to work to find a way to provide a long-term
reauthorization of the program. That work should begin today."
In an opinion article for PC 360 and the National Underwriter,
["Why is long-term re-authorization of NFIP so elusive?"],
Gentile said it is "more than possible" that lawmakers can use the four-month
extension period to come up with a long-term reauthorization of the NFIP with
Latest Hurricane Forecast: 12 Named Storms
forecast issued on Aug. 2 by Colorado State University
says 12 named storms are likely to form this year, down from 17 last year and
below the 1981-2010 average.
However, the outlook is a slight increase from the July forecast and comes as the
Atlantic Basin is about to enter its most active period of the hurricane season.
"With all of our seasonal forecasts, we can still have a nasty hurricane," said
Phil Klotzbach, co-author of the report.
"People still need to prepare for every hurricane season regardless of our seasonal
FEMA Buys $500 Million Cat Bond for NFIP
The Federal Emergency Management Agency (FEMA) has used the capital markets for
the first time to access reinsurance cover for the National Flood Insurance
Program with a three-year, $500 million catastrophe bond, known as FloodSmart Re.
The deal is structured to cover, for a given flood event, 3.5 percent of losses
between $5 billion and $10 billion, then 13 percent of losses between $7.5 billion
and $10 billion. FEMA will pay $62 million in premium for the first year of coverage.
READ: NFIP set for major reform under Maurstad's lead
"Reinsurance is a linchpin to help strengthen the financial framework of the NFIP,"
David Maurstad, chief executive of the NFIP, said in the statement. "Engaging capital
markets was the logical next step in maturing the NFIP Reinsurance Program in a way
that benefits policyholders and taxpayers, and expands the role of the private markets
in managing flood risk in the United States."