New York partner Tom Dawson was quoted in a Business Insurance article titled “Reinsurers Expected to Sign on to NFIP Pact Despite 2017 Claim.” The article discussed the Federal Emergency Management Agency’s recent $1 billion reinsurance claim to pay Hurricane Harvey claims and its potential impact on future reinsurance deals.
Tom stated that he does not believe the $1 billion claim will materially discourage reinsurers from participating in the next reinsurance deal, explaining “There are a lot of reinsurers that are looking for new classes of businesses…to hang it up after one year… would be really short-sighted.”
Tom also discussed recent Congressional efforts to reauthorize and overhaul the National Flood Insurance Program (NFIP). A recent extension of the NFIP gives lawmakers two extra weeks, but it unclear whether they will be able to come to an agreement in that time. Tom stated “It’s just another kick of the can down the road..[i]t doesn’t look like there’s a whole lot of agreement on what the package should look like.”