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FEMA’s National Flood
Insurance Program (NFIP) has experienced many large flood disasters over
its history, particularly in 2005, 2008, 2012, and 2017. As a result of these
flood disasters, the cost of flood policy claims has far exceeded the NFIP’s
premium revenues, and in turn, the NFIP has incurred a debt to the U.S.
Treasury. As of December 31, 2017, the debt for the NFIP to the U.S. Treasury
was $20.525 billion.
Last January, FEMA
made a cornerstone placement of reinsurance
for the 2017 calendar year, transferring $1.042 billion of the NFIP’s financial
risk to 25 reinsurance markets in the private sector. The 2017
placement put the NFIP in a better position to manage losses incurred from
major events by transferring risk exposure to the reinsurance markets.
Continuing and
expanding this practice of resiliency and protection against future floods, for
2018, FEMA secured $1.46 billion in reinsurance to cover any qualifying flood
losses occurring in this calendar year. Under the 2018 Reinsurance Agreement,
reinsurers agreed to indemnify FEMA for flood claims on an occurrence basis.
This year, the agreement is structured to cover 18.6 percent of losses between
$4 billion and $6 billion, and 54.3 percent of losses between $6 billion and $8
billion. FEMA paid a total premium of $235 million for the coverage.
FEMA
received authority to secure reinsurance from the private reinsurance and
capital markets through the Biggert-Waters Flood Insurance Reform Act of 2012
(BW-12) and the Homeowner Flood Insurance Affordability Act of 2014
(HFIAA). FEMA contracted with Guy Carpenter and Company, a subsidiary of Marsh
& McLennan Companies, to provide broker services to assist in securing the
reinsurance placements. FEMA also contracted with Aon Benfield for
financial advisory services for the January 2018 placement of reinsurance.
For more information, read,
“Public and Private
Partnerships Strengthen Flood Protection with Reinsurance” at www.fema.gov/blog.
FEMA
recently released the Tribal Mitigation Plan Review Guide (Guide) and will
update and supersede the current FEMA Tribal Multi-Hazard Mitigation
Planning Guidance issued in 2010. Both the
current as well as the newly revised Guides are available online at www.fema.gov/media-library/assets/documents/18355. To phase in the implementation, the new Guide will becomes effective later this year on December 5, 2018.
The
Guide will provide direction to FEMA officials as they interpret regulatory
requirements in their review and approval of tribal mitigation plans. The
underlying regulatory requirements for the review and approval of tribal
mitigation planning in the Code of Federal Regulations (44 CFR Part 201) have
not changed.
FEMA
engaged tribal governments throughout the development of the Guide, including
tribal consultations in 2016 and 2017. This update will facilitate tribal
governments' successful development and adoption of mitigation plans.
FEMA will provide
additional information to tribal governments through national and regional
webinars. The first webinar is scheduled for Tuesday, January 23, at 4 p.m. EST.
To join the webinar:
Adobe
Connect: https://fema.connectsolutions.com/r51hovh1mun/
Audio
dial in:
1-800-320-4330
Participant
Code:
905506
More
information on the requirement to have a FEMA-approved tribal mitigation plan
as a condition for receiving certain assistance from FEMA, such as from Public Assistance (Categories C through G) after a
presidentially-declared disaster, Hazard Mitigation Assistance, and /or Fire
Mitigation Assistance Grants, can be found on FEMA’s website at www.fema.gov/hazard-mitigation-plan-requirement.
Additional information on FEMA’s mitigation planning program can be found at www.fema.gov/hazard-mitigation-planning.
Notice of Funding Opportunity for Assistance to Firefighters Grant Program
FEMA announced that the annual funding opportunity for the Fiscal Year 2017
Assistance to Firefighters Grant Program (AFG) is now open, and the application
period will close on Friday, February 2, 2018 at 5 p.m. (Eastern). The Fiscal Year 2017 AFG program will
award $310.5 million to enhance the safety of the public and firefighters
against fire-related deaths and hazards.
Applicant
tools, including the AFG Notice of Funding Opportunity, for this program will
be available at www.grants.gov
and at www.fema.gov/welcome-assistance-firefighters-grant-program.
Further, the “Get Ready Guide”
may also be useful for potential applicants and is provided to answer questions
and to help prepare grant applications.
For
fire departments/applicants requiring assistance please visit www.fema.gov/grants,
or contact the AFG Help Desk at firegrants@fema.gov or 1-866-274-0960.
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