09/17/2024 | Press release | Archived content
Updated as of 9/11/2024, if you have any questions or concerns regarding this document, please contact FEMA at [email protected]
ACTION: NOTICE ANNOUNCING INTENDED PROCURMENT OF
REINSURANCE FOR THE NATIONAL FLOOD INSURANCE PROGRAM AS
REQUIRED UNDER THE AGREEMENT ON GOVERNMENT PROCUREMENT
(MAR. 30, 2012).
The Federal Emergency Management Agency ("FEMA") will be procuring reinsurance for the National Flood Insurance Program ("NFIP") to be effective on or about January 1,
2025. To participate in the reinsurance procurement, vendors must submit a request to participate by December 1, 2024 (the date on or about FEMA anticipates Firm Order
Terms will be issued), and final tenders by December 9, 2024 (the date on or about
FEMA anticipates final authorizations will be due from the reinsurance markets).
FOR FURTHER INFORMATION CONTACT: [email protected].
Pursuant to the World Trade Organization ("WTO"), Agreement on Government
Procurement ("GPA"), as amended on March 30, 2012, FEMA, the procuring entity, is hereby providing notice of its intended procurement of reinsurance for the NFIP, as amended. For more information, refer to Art. VII of the GPA. FEMA is not securing reinsurance through the Federal Acquisition Regulations ("FAR") and reinsurers will not be considered Federal contractors.
FEMA provides Notice on the following:
FEMA intends to procure reinsurance for flood risk in the United States insured by the
NFIP. Guy Carpenter and Company is FEMA's broker and will act as the third-party intermediary for the intended procurement of reinsurance referenced in this notice. For any information and relevant documentation relating to the procurement contact [email protected].
FEMA intends to procure reinsurance on or about January 1, 2025, to be effective for one or more years. The procurement of reinsurance will be an agreement of indemnity between FEMA and private reinsurance firms. FEMA will pay a reinsurance premium to transfer a portion of the NFIP's flood-risk to the counterparties (reinsurers). The reinsurers will be responsible for the payment of potential NFIP losses as defined by the reinsurance agreement. The amount of reinsurance and the design of the reinsurance program will remain undisclosed until determined otherwise by FEMA.
This provision is not applicable to this reinsurance procurement.
This provision is not applicable to this reinsurance procurement.
The duration of the reinsurance treaty will be one or more years to begin on or about
January 1, 2025.
FEMA intends to procure reinsurance by following standard reinsurance industry practices. FEMA will determine Firm Order Terms and disseminate the terms via email to all reinsurers who meet the minimum criteria listed below in Section (j) interested in participating in the FEMA reinsurance program. This reinsurance procurement will not be available through Federal Business Opportunities, because FEMA will secure reinsurance outside the FAR.
The final date for the submission of request for participation will be December 1, 2024 (the date on or about FEMA anticipates Firm Order Terms will be issued). Refer to Section (a) for contact information.
The final date for the submission of tenders is December 9, 2024 (the date on or about FEMA anticipates final authorizations will be due from the reinsurance markets). Refer to Section (a) for contact information.
The notice and intended procurement will be in English (United States).
Below is a list and brief description of conditions for participation of reinsurers:
1. Ability to write property catastrophic excess of loss reinsurance in the United States;
2. Fulfillment of minimum financial requirements measured by an:
A. AM Best financial strength rating of A- with a stable outlook or better, or
B. S&P financial strength rating of A- with a stable outlook or better,
C. For Underwriting Members of Lloyd's, Lloyd's AM Best or S&P financial strength market rating of A- with a stable outlook or better,
D. Policyholder Surplus or Shareholder Funds of at least $500 million, or either in combination with other financial equivalents that meet FEMA's approval: or for Underwriting Members of Lloyd's a Stamp Capacity of at least £200 million;
3. Satisfactory outcome of appropriate financial analyses (e.g., measurements of liquidity, leverage, capital adequacy, rating outlook) and other considerations FEMA determines are reasonable and appropriate; and
4. Payment of taxes pursuant to country or jurisdiction in which the reinsurance company operates.
Except as authorized by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury, potential reinsurance companies shall not acquire, for use in the performance of the intended NFIP reinsurance treaty, any supplies or services if any proclamation, Executive Order, or statute administered by OFAC, or if OFAC's implementing regulations at 31 CFR Chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States.
Lists of entities and individuals subject to economic sanctions are included in OFAC's
List of Specially Designated Nationals and Blocked Persons (SDN List) at
https://www.treasury.gov/resource-center/sanctions/Programs/Pages/Progr… .
FEMA will not secure reinsurance from reinsurance companies that are inverted domestic corporations, or a subsidiary of an inverted domestic corporation as defined in 6 U.S.C. § 395(b)-(c).
FEMA will not secure reinsurance from reinsurance companies that have unpaid U.S. Federal tax liability, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability.
FEMA will not secure reinsurance from a reinsurance company where the entity has been convicted of a felony criminal violation under any Federal law in the preceding twenty- four (24) months.
Pursuant to section 523 of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235), and similar provisions, if contained in subsequent appropriations act, FEMA will not secure reinsurance from reinsurance companies that have:
Pursuant to section 743 of Division E, Title VII, of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) and its successor provisions in subsequent appropriations acts (and as extended in continuing resolutions), FEMA will not secure reinsurance from reinsurance companies that require employees or subcontractors seeking to report waste, fraud, or abuse to sign internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting such waste, fraud, or abuse to a designated investigative or law enforcement representative of a Federal department or agency authorized to receive such information. This prohibition does not contravene requirements applicable to Standard Form 312 (Classified Information Nondisclosure Agreement), Form 4414 (Sensitive Compartmented Information Nondisclosure Agreement), or any other form issued by a Federal department or agency governing the nondisclosure of classified information.
Pursuant to the Trade Agreements Act of 1979 (TAA), (19 U.S.C. § 2501) and the WTO GPA, FEMA will only secure reinsurance from reinsurance companies that meet the following criteria:
This Notice does not restrict FEMA's allocation decisions as to the number of reinsurers or amount of reinsurance to be obtained from those reinsurers meeting the minimum requirements described in the evaluating criteria above. FEMA may give program allocation preference to reinsurers with:
Reinsurance is a service covered by the WTO GPA.