State of the National Flood Insurance Program NFDA

State of the National Flood Insurance Program NFDA Annual Conference March 20 – 22, 2016 Scottsdale, AZ

Transforming the National Flood Insurance Program Current Status: Future Path: FIMA Re. Organzation 2016 Priorities NFIP Policy and Financial Trends Sandy Claims Review Catastrop hic Planning Customercentric Reset 2 Solvency Affordability NFIP Re-authorization

FIMA Re-organization Federal Insurance and Mitigation Administration (FIMA) Associate Administrator ------Deputy Associate Administrator for Insurance and Mitigation Flood Insurance Advocate FIMA Integration Office Action Branch Director --------Ofc of Environmental Planning & Historic Preservation Customer Experience Director Strategy Branch Assistant Administrator --------Deputy Assistant Administrator Risk Management Assistant Administrator --------Deputy Assistant Administrator Mitigation 3 Assistant Administrator --------Deputy Assistant Administrator Federal Insurance Assistant Administrator --------Funds Management

FIMA Re-organization Federal Insurance --------David Maurstad, Assistant Administrator, SES Paul Huang, Deputy Assistant Administrator, SES Insurance Acquisition & Technology Division Cliff Oliver, Executive Director, SES Policyholder Services Division Claudia Murphy, Division Director Product Delivery Division Lloyd (Tony) Hake, Division Director Insurance Program Management Insurance Systems Branch 4

FIMA Re-organization Federal Insurance --------David Maurstad, Assistant Administrator, SES Paul Huang, Deputy Assistant Administrator, SES Insurance Acquisition & Technology Division Cliff Oliver, Executive Director, SES Insurance Analytics & Policy Branch Elizabeth Asche, Branch Chief Policyholder Services Division Claudia Murphy, Division Director Marketing & Outreach Branch Eugene (Butch) Kinerney, Branch Chief 5 Product Delivery Division Lloyd (Tony) Hake, Division Director Appeals Branch Christopher Page, Branch Chief November 2015

FIMA Re-organization Federal Insurance --------David Maurstad, Assistant Administrator, SES Paul Huang, Deputy Assistant Administrator, SES Insurance Acquisition & Technology Division Cliff Oliver, Executive Director, SES Claims Branch Policyholder Services Division Claudia Murphy, Division Director Product Delivery Division Lloyd (Tony) Hake, Division Director Industry Management Branch Direct Service Branch 6 Underwriting Branch Arturo (Jhun) de-la-Cruz, Branch Chief November 2015

NFIP Trends: Policies in Force, 2004 to 2015 6, 000 (Policies in force Count) 5, 500, 000 5, 000 4, 500, 000 4, 000 2004_)2005_)2006_)2007_)2008_)2009_)2010_)2011_)2012_)2013_)2014_)2015_)2016_) Year 7

NFIP Cash-on-hand, Reserve Fund and Available Borrowing Authority $10. 010 B $ Millions $7. 425 B $2. 585 B 8

Sandy Claims Review 9

Sandy Claims Review Process 10

Transforming the National Flood Insurance Program Current Status: Future Path: FIMA Re. Organzation 2016 Priorities NFIP Policy and Financial Trends Sandy Claims Review Catastrop hic Planning Customercentric Reset 11 Solvency Affordability NFIP Re-authorization

NFIP Customer Centric Reset

What is Customer Experience? 13

Customer experience (CX) is a broad framework we used for understanding how policyholders experience the NFIP Willingness to recommend (WTR), Percent 100 Brand Product $$ Value Service 20 -30 Example drivers • • Trustworthiness Reputation • • • Functionality Quality, Reliability Level of engagement • • Pricing Fees • • Ease of purchase Call center interactions In-person interactions Digital customer care 14 Each of these 4 elements plays a role in shaping CX, though the importance of each will vary by type of organization 3

Value stands out as the most important CX driver 15

Who do people trust? 16

NFIP CX focused on 8 core journeys 17

FEMA Prioritized 29 Initiatives to Form the Foundation of the CX Strategic Roadmap 18

Outcome: We have embarked on a multiyear effort to transform how our customer’s experience the NFIP 19

What It Means For Us Better program and map change coordination for our customers Risk Rating 2. 0 Product Simplification Communities 20

Transforming the National Flood Insurance Program Current Status: Future Path: FIMA Re. Organzation 2016 Priorities NFIP Policy and Financial Trends Sandy Claims Review Catastrop hic Planning Customercentric Reset 21 Solvency Affordability NFIP Re-authorization

Future Path: 2016 NFIP Priorities 22

FEMA’s 4 key areas to advance NFIP, 2016 1. Customer Service Reset 2. Improved understanding of Risks 3. Reducing Risks 4. Engaging Private Sector 23

Engaging the Private Sector: Privatization encompasses an array of options 24

Future Path: Catastrophic (CAT) Planning 25

CAT Planning: El Nino 5 Event Scenario Background and purpose § Resulting from an Operational Analysis & Evaluation visit at the South Carolina JFO, FIMA identified the need to develop a contingency plan to apply successes in South Carolina § In preparation for El Nino, develop scenario for 5 nearly simultaneous flood events as a result of El Nino weather 2016 § Incident Management Resources Division partnered with NFIP, OEHP, HMA and other program areas to identify and develop data and activities that contributed to success or would avoid potential shortfalls and may be replicated in other events 26

El Nino 5 Event Scenario Types of Actions/Data Identified § FRO staffing, location, and duties § Communication processes § NFIP data sharing with JFO Ø Types of data to share Ø Methods to share data § Evaluate adjuster activity and potential gaps § Cadre management Ø Existing resources Ø Possible need for additional/new titles 27

El Nino 5 Event Scenario Next Steps § Identify triggers for these actions/data sharing § What do the Disaster Field Offices need? ØPredictable reports and vehicles? ØWho needs what and when? § Incorporate these into doctrine § Update SOPs for new FIMA structure 28

We are transforming the National Flood Insurance Program Current Status: Future Path: FIMA Now 2016 Priorities Trends Sandy Claims Review Solvency Affordability CAT Planning Customercentric Reset NFIP Re-authorization 29

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