In the News Claims for hurricane Harvey, Irma will outstrip NFIP borrowing authority, lawmaker says
This year, FEMA entered into agreements with 25 reinsurers to provide up to $1.04 billion of reinsurance to pay claims for a qualifying event in which damages are more than $4 billion. It appears the reinsurance arrangement was a good deal for FEMA, said R.J. Lehmann, senior fellow for the R Street Institute. The program, which is about $25 billion in debt, needs to be reformed, he said.“We think the stress the recent storms have placed on the program show how essential it is to reform the NFIP,” Lehmann told Best’s News Service, “starting with moving to open the door for the growing market of private flood insurance.”
