As we noted earlier this week, the rating engine that will provide the new Risk Rating 2.0 rates was scheduled to become available to participating carriers, known as Write-Your-Owns (WYOs) on August 1. However, today (July 30), FEMA notified WYOs that the rating engine site will be made available on August 1 as planned, but only for users to test their connections.
FEMA said it anticipates quoting and policy issuance for Phase I policies (defined below) would begin on August 16, about two weeks later than planned. However, FEMA will notify the WYOs when the new rates may be used for quoting and policy issuance, leaving open the possibility that the rating engine still won’t be fully functional on August 16.
According to the draft Industry Transition Memo, “Phase I policies” fall into two categories:
- New policies beginning on or after October 1, 2021
- Existing policies with renewal dates between October 1, 2021 and March 31, 2022 for which the Risk Rating 2.0 rate is more favorable (i.e., lower) to the policyholder than their existing or “legacy” rate.
The draft Industry Transition Memo and draft Flood Insurance Manual, with appendices, are available in draft form for review and download here. These documents are expected to be finalized around September 1.
PIA is continuing to work with FEMA to improve the rollout of Risk Rating 2.0 for the benefit of our members and the consumers they serve.