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Bill reintroduced calling for more NFIP flood reinsurance & cat bonds

A bill has been reintroduced to the United States Congress that again calls on lawmakers to codify that Federal Emergency Management Agency (FEMA), as the administrator of the U.S. National Flood Insurance Program (NFIP), sets a PML target each year and buys reinsurance and capital market risk transfer solutions accordingly.

The Taxpayer Exposure Mitigation Act is one of four bills reintroduced by Congressman Rep. Blaine Luetkemeyer of Missouri and focuses solely on mandating use of risk capital to support the NFIP’s financing needs, de-risk it and enable it to pay its claims.

Efforts to enshrine in law a requirement for the NFIP to be de-risked with the help of the private reinsurance and capital markets have been underway some years, but so far these efforts have failed to gain the necessary support, or have been sidelined as other legislative issues took precedence.


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