By now, you’ve probably heard of the Federal Emergency Management Agency’s effort to revamp its method of assigning prices to the National Flood Insurance Program’s policies, which took effect on Oct. 1. If you haven’t, you should educate yourself quickly because Risk Rating 2.0, as FEMA calls it, will signal significant changes in the industry—for agents and policyholders alike.
FEMA says the new rating system “leverages industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk.”