While the official announcement is yet to be made by FEMA, it is expected to say that new business will be effective October 1, 2021, with renewal business implemented on April 1, 2022.
Earlier this week, FEMA began to notify the insurance industry that the implementation of Risk Rating 2.0 will be revised. Although an official announcement has not been made yet, one is expected in the coming days.
The official announcement is expected to say that new business will be effective October 1, 2021, as currently planned and that renewal business will now be implemented on April 1, 2022.
Additionally, to address equity issues for policies that renew between these two dates, FEMA will develop a method to allow individual policies to be written under the new program. That will also allow the systems to be more fully tested so that the transition on April 1, 2022, for all renewals will go more smoothly.
As FEMA continues to provide more information on Risk Rating 2.0, we will continue to provide members with updates in the weekly News & Views e-newsletter.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.