DHS FEMA RFI: Direct to Customer capability (D2C) for the National Flood Insurance Program (NFIP)

Notice ID: 70FA3124I00000004

The Federal Insurance Directorate (FID), an organization within the Federal Emergency Management Agency (FEMA) Resilience, manages the National Flood Insurance Program (NFIP). In 1968, Congress created the NFIP to provide a means for property owners to financially protect themselves since standard homeowners’ insurance does not cover losses due to flooding. The NFIP offers flood insurance to homeowners, renters, and business owners if their communities participate in the NFIP. More than 22,500 communities participate in the program and have agreed to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. The NFIP offers flood insurance that can be purchased directly from FEMA’s NFIP Direct, or through approximately 60 private Property and Casualty (P&C) insurance companies that have entered into a Financial Assistance/Subsidy arrangement (the “arrangement” codified at 44 C.F.R. Part 62, Appendix A). These companies are referred to as Write Your Own or WYO companies. Rates are set nationally and do not differ from company to company or agent to agent. The rates depend on many factors, including the type of construction and distance and elevation relative to flooding sources. Flood insurance protects two types of insurable property: building and contents. As FEMA strives to increase climate resilience, ensure equitable access and outcomes for all citizens, and promote and sustain a ready FEMA and nation, it is imperative that FEMA enable the digital sale and servicing of flood insurance to increase the number of people covered. FEMA calls this initiative “Direct to Customer” or “D2C”. While the NFIP is the world’s largest single peril insurance company, covering nearly 5 million policyholders with an annual premium of $3.5 billion and $1.3 trillion insurance in force, only 4% of structures in the United States are covered. As climate change continues, flood risks are increasing across the country with flooding events occurring in all 50 states and 99% of counties in the United States since 1996. In order to close the nation’s flood insurance gap, the D2C Initiative has several goals:

• Achieve more equitable flood insurance outcomes by designing a new digital customer experience for selling and servicing NFIP policies.
• Improve climate resilience by providing digital solutions that make flood insurance more accessible and affordable to consumers and businesses.
• Reduce disaster suffering by utilizing digital solutions to make NFIP operations more efficient and more effective before, during and after flood events.

More here.

🔊 Listen to Story