FEMA COMPLETES $1.33BN 2020 REINSURANCE PROGRAMME FOR NFIP

The US Federal Emergency Management Agency (Fema) has completed the renewal of the traditional reinsurance programme for 2020 for the National Flood Insurance Programme. The agency has secured $1.33bn of one-year per-occurrence flood cover from 15 Lloyd’s syndicates and 12 global re/insurers. FEMA paid a $205m premium for the cover, up from $186m last year, when it obtained $1.32bn in limit. The 2020 programme covers 10.25% of NFIP flood losses between $4bn and $6bn (versus 14% in 2019), 34.68% of losses between $6bn and $8bn (versus 25.6%), and 21.8% of losses between $8bn and $10bn (versus 26.6%). With $80m in protection from multi-year FloodSmart Re catastrophe bonds, the renewed traditional programme gives the NFIP $2.13bn in total reinsurance cover for 2020.