[20180417]IN10887_国家洪水保险计划（NFIP）、再保险和巨灾债券.pdf

CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i The National Flood Insurance Program (NFIP), Reinsurance, and Catastrophe Bonds (name redacted) Analyst in Flood Insurance and Emergency Management (name redacted) Specialist in Financial Economics April 17, 2018 Insurance generally serves to transfer risk from one entity who does not want to bear that risk to another entity that does. An initial insurance purchase, such as homeowners buying a policy to cover damage to their home, however, is often only the first transfer of that risk. The initial (or primary) insurer may then transfer (or cede) some or all of this risk to another company or investor, such as a reinsurer. Such risk transfers are, on the whole, a net cost for primary insurers, just as purchasing insurance is a net cost for homeowners. The Homeowner Flood Insurance Affordability Act of 2014 (P.L. 113-89) revised the authority of the National Flood Insurance Program (NFIP) to secure reinsurance from “private reinsurance and capital markets.” Risk transfer from the private market could reduce the likelihood of the Federal Emergency Management Agency (FEMA) needing to borrow from the Treasury