On Jan. 15, FEMA issued 2026 property insurer subsidy arrangement.
FEMA issued notice announcing 2026 Financial Assistance/Subsidy Arrangement for private property insurers interested in participating in Write Your Own Program.
Write Your Own Program
FEMA enters into standard Financial Assistance/Subsidy Arrangement with private sector property insurers, also known as Write your own (WYO) companies.
To sell National Flood Insurance Program (NFIP) flood insurance policies under own names and adjust and pay claims under Standard Flood Insurance Policy (SFIP).
Each arrangement by WYO company must be in form and substance of standard.
Changes to 2026 Arrangement
2026 Arrangement substantially similar to previous year's arrangement, with changes.
Changes included adding insurance before agents to clarify the type of agent when referring to licensed insurance professionals that sell property and flood insurance.
Further, added the definitions for terms service provider, vendor and contractor.
Clarified company responsible for payment of insurance brokers'/agents' commissions.
Added new provision in the arrangement requiring a vendor oversight plan to be included in the Operations Plan describing the company's oversight of its vendors.
Require WYO companies to include in their distribution plan average rate of commissions pay insurance agents and brokers for new business and renewals.
Add independent adjusters to list consider when messaging during catastrophic events.
Updated reference to system security requirements by NIST Protecting Controlled Unclassified Info in Nonfederal Systems, Organizations, to latest May 2024 version.
Changed reference to source to obtain the data for the property/casualty industry, from A.M. Best to the National Association of Insurance Commissioners (NAIC).
Consultation
Interested insurers must submit intent to subscribe to Arrangement by May 15, 2025.
