FEMA Bulletin W-16059 Aug. 23, 2016
MEMORANDUM FOR: Write Your Own (WYO) Company Principal Coordinators and the
National Flood Insurance Program Servicing Agent
Roy E. Wright
Deputy Associate Administrator for Insurance and Mitigation
Federal Insurance and Mitigation Administration
SUBJECT: Revised Error Threshold for Underwriting Operation Reviews
In keeping with FEMA’s commitment to excellence in service of NFIP policyholders and
appropriate spending of taxpayer funds, FEMA is working to increase oversight of WYO companies.
Accordingly, FEMA intends to implement the following change to the WYO program for the
FY 2017 Arrangement Year.
Effective Oct. 1, 2016, FEMA is revising the acceptable error percentage for reviews of a
WYO company’s underwriting operations from 20 percent to 7 percent.
If the error percentage is greater than 7 percent but not exceeding 14 percent, the company
will be subject to an annual Operation Review.
If the error percentage is greater than 14 percent, FEMA will require WYO companies to
perform a re-underwriting of their book of business issued since the last Operation
Review, based on the types of errors found. Companies in this category also will be subject
to annual Operation Reviews.
This bulletin does not implement any changes to the Arrangement, Financial Control Plan
Requirements and Procedures, or any other NFIP document. FEMA will implement any actual
changes using appropriate procedures provided by statute, regulation, and agency guidance.
If you have any questions about this bulletin, please contact Kevin Brown of the
Industry Management branch at firstname.lastname@example.org.