01.Core Concepts

Congress delayed extending the NFIP several times The program was already facing a large deficit before paying out more than $8 billion in claims from floods in 2017 Congress must act before the end of November 2018 to extend the program The NFIP started a reinsurance program in 2016 and expended it in 2017. For 2018, about $1.5 billion of risk was shifted to reinsurers Additional risk was shifted to the capital markets by issuing catastrophe (“Cat”) bonds