We are used to talking about Policies not about Customers. (who might have more than 1 policy)

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1 The NFIP currently has 5.3M policies and $1.3 trillion of coverage in force. 57% of policies are in FL, TX, and LA. Those states and NY and NJ have also accounted for the greatest dollar values in claims. We are used to talking about Policies not about Customers. (who might have more than 1 policy)

2 FEMA has direct control over some elements of the customer experience, but most customer interactions are not with FEMA.

3 As of 12/2014, the 5.3M policies were served by 77 WYOs and the DSA, but 9 vendors and Wright Flood really conduct the flood insurance business. Most WYOs have at least some of their flood insurance operations through a vendor. Vendor # WYOs a,b NFS-Montana 43 Torrent Technologies, Inc. 22 NFS-Maryland 3 HP Flood Insurance Services 2 NFS-Kansas 2 BinTech Partners Inc. 1 CSC/Covansys (CVS) 1 (NFIP DSA) E-INS 1 Seattle Specialty Ins. Service 1 In-House (No Vendor) 2 What does a Vendor do? (e.g. NFS Montana): Full Service: WYO cedes all business processes, except agent recruitment, to Vendor (self-stated most common model) Semi-Remote Service: Blended model Remote Service: WYO performs all service related functions but licenses vendor software to manage their business. FEMA doesn t systematically track the extent of WYO to Vendor relationships.

4 FEMA has some contact with front line agents and adjusters through training but little opportunity to influence those involved in home purchase (realtors, loan officers, title examiners) and WYO contracted engineers.

5 FEMA cannot answer basic questions about customers, claims, and WYOs due 1 to antiquated information technology or lack of processes to capture and report the information in real time. Can we answer this question? Key Questions Yes Sort Of No How fast and accurate? Customer 1. How many policies and how much coverage is in force? Data in the system is What percentage of policies are mandatory purchase? days old. WYOs report every 30 days, takes Where are the polices? days to upload. 4. How many unique customers do we have? Can match policy data to 5. What are the demographics of our customers? other datasets. Only partial matches, not run 6. How long have customers been with the program? very frequently. 7. What percent of customers have ever made a claim? 8. When and how often have customers switched WYOS? 9. How satisfied are customers with their coverage? Claims 1. Why is the payment different than what the policyholder expected? Samples are checked via 2. Did the payment match the adjusted loss? (i.e. proper ) the IPERIA, Operational Review, and Reinspection 3. Was the WYO (and the adjustor) paid the correct amount? Processes. 4. How long did it take to get the claim processed? Reports received annually or less frequently. 5. Was the loss correctly and fairly adjusted? 6. How satisfied was the customer with their claim experience? WYOs 1. Is WYO operating in accordance with laws, regulations, & policies? Checked via the 2. Is there any evidence of waste, fraud, or abuse? Operational Review. Every WYO to be checked every 3. Is there any evidence of poor performance? 3 years.

6 A signal FEMA might receive about adjuster or engineer issues would come through appeals. RID keeps track of the amount of correspondence received each month, but has limited additional data about that correspondence.

7 A single flood survivor may be interacting with NFIP and Individual Assistance but FEMA treats those programs very separately. Home damaged in a federally declared disaster. Their flood insurance coverage may impact their Individual Assistance eligibility and the amount and type of assistance they receive if they accept federal assistance for insurable real and personal property and live in a Special Flood Hazard Area, they are required to purchase and maintain flood insurance to be eligible for future disaster assistance....eligible individuals may receive a Group Flood Insurance Policy purchased by the state, through IA, for first 3 years...individuals who don t qualify for a GFIP are required to purchase their own policy if they do not meet flood insurance requirements, they may not be eligible for some forms of IA

8 Interim Office of the Flood Insurance Advocate

9 The Advocate s Mission The Interim Office of the Flood Insurance Advocate advocates for the fair treatment of policyholders and property owners by providing education and guidance on all aspects of the NFIP, identifying trends affecting the public, and making recommendations for program improvements to FEMA leadership.

10 Interim Office Scope The Office will remain interim until permanent staff can be obtained; staff will be a mix of internal transfers and new hires The Interim Office will focus on: Coordinating referrals to existing resources Providing information and guidance when existing resources have not adequately addressed a customer s concern Helping customers understand their options during the claims process Providing customers with general information on the flood insurance rate map review and amendment process Work directly with NFIP SMEs to answer complex questions The Interim Office will not conduct: HFIAA Section 24, (b)(3) - assist in the development of regional capacity HFIAA Section 24, (b)(5) aid potential policyholders in obtaining and verifying rate information Sandy Claims related inquiries

11 Advocate Inquiries To Date Floodplain Management 4% Sandy Claims 17% Mitigation 8% Mapping 25% NFIP Underwriting & Rating 46% A number of complex inquiries have been handled by Advocate and program staff, requiring significant resources in staff time and coordination Most inquiries contain questions pertaining to more than one topic; inquiries are categorized by the primary issue Currently, Sandy claims inquiries are the most prevalent and are directed to the Sandy claims resources; if Sandy claims are removed, Mapping inquiries increase to 30% The Interim Office is available via Insurance-advocate@fema.dhs.gov