Private Insurers in Flood Insurance Program

When someone buys flood insurance from private insurers, the policy is issued on behalf of NFIP

and reinsured at a 100% level against any loss incurred by the federal government. This reinsurance

means private insurers have no risk of loss. Private carriers perform the servicing

function for the government and retain part of the premium to cover costs, pay agent commissions,

and make a profit. There is no loss potential to a private carrier participating in the WYO program