The Federal Emergency Management Agency (FEMA) is engaging a broker to handle premium payments and claims recoveries for its reinsurance agreements. The broker will facilitate the payment process, ensuring compliance with federal standards, while FEMA retains authority over the approval of reinsurers and payment amounts. The broker will establish a dedicated bank account for federal funds and must forward all reinsurer invoices to FEMA promptly. In the premium payment process, FEMA will create vendor profiles for reinsurers, specifying their payment details. The broker will manage the transfer of premium payments from FEMA to reinsurers upon receiving written authorization. For claims payments, the broker will issue invoices based on FEMA-directed proof of loss documents and collect payments, adhering to established timelines and processes. Additionally, the broker must notify FEMA of any payment delays from reinsurers and follow up on outstanding claims. This structured approach aims to ensure the proper handling and disbursement of federal funds under FEMA’s oversight, ultimately enhancing the effectiveness of its reinsurance agreements. Compliance with the outlined procedures is essential for maintaining accountability and transparency in federal fund management.

The National Flood Insurance Program (NFIP) seeks to engage a reinsurance broker through this Performance Work Statement (PWS) to enhance its Reinsurance Program (NRP). The NFIP, established in 1968, aims to manage flood risks and provide insurance following significant debts incurred from catastrophic floods. The broker’s role is divided into three key task areas: Strategic Advisory and Support, Placement Execution and Administration, and Modeling and Risk Analytics. Responsibilities include developing reinsurance strategies, negotiating placements, and conducting thorough risk modeling to ensure optimal pricing and compliance with regulations. The broker must supply experienced personnel, including a Lead Broker with extensive experience in reinsurance and a Lead Data Modeler specialized in data analysis for catastrophic risks. Deliverables, performance standards, and monitoring practices establish a framework for evaluating the contractor's effectiveness, emphasizing compliance with FEMA guidelines to streamline operations. This initiative reflects a commitment to effectively managing NFIP’s financial volatility by leveraging private sector expertise and innovative reinsurance structures to mitigate risk on a larger scale.