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📋 '''Write your own (WYO)''' is a designation used in the United States to describe the public-private arrangement through which private [[Definition:Insurance carrier | insurance carriers]] issue and service [[Definition:Flood insurance | flood insurance]] policies on behalf of the federal government's [[Definition:National Flood Insurance Program (NFIP) | National Flood Insurance Program (NFIP)]]. Under this framework, participating insurers use their own branding, [[Definition:Policy administration system | policy administration systems]], and [[Definition:Claims management | claims-handling]] infrastructure to sell and manage NFIP flood policies, even though the financial risk ultimately rests with the federal government. The WYO concept was introduced in 1983 to expand the distribution of flood coverage by leveraging the existing networks of private insurers rather than relying solely on direct federal sales.

⚙️ A carrier that enrolls as a WYO company enters into a formal arrangement with the Federal Emergency Management Agency (FEMA), which administers the NFIP. The insurer collects [[Definition:Premium | premiums]], processes [[Definition:Claim | claims]], and handles [[Definition:Policy | policy]] servicing, retaining an [[Definition:Expense allowance | expense allowance]] to cover its administrative costs. However, the premiums collected — net of the insurer's allowance — are deposited into the National Flood Insurance Fund, and claim payments are drawn from that same fund. Because the [[Definition:Underwriting risk | underwriting risk]] stays with the federal program, WYO carriers do not need to set aside [[Definition:Loss reserves | loss reserves]] for these policies in the same way they would for their proprietary book of business. Rate-setting, coverage forms, and [[Definition:Underwriting guidelines | underwriting guidelines]] are all dictated by FEMA, leaving little room for the carrier to differentiate on product design.

💡 The WYO mechanism matters enormously to the flood insurance market because it solved a critical distribution problem: without private-sector participation, the NFIP struggled to reach enough property owners to build a meaningful risk pool. Today, the vast majority of NFIP policies are sold through WYO carriers, making them the public face of federal flood insurance for most [[Definition:Policyholder | policyholders]]. For participating insurers, the program offers a low-risk revenue stream and a way to deepen relationships with customers who may also purchase [[Definition:Homeowners insurance | homeowners]] or [[Definition:Commercial property insurance | commercial property]] coverage. The arrangement has also shaped the emerging [[Definition:Private flood insurance | private flood insurance]] market, as carriers weigh whether to compete with — or complement — the NFIP product they already distribute. Understanding the WYO structure is essential for anyone evaluating flood risk transfer in the U.S., particularly as climate-driven losses intensify debate over NFIP reform and the role of private capital.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:National Flood Insurance Program (NFIP)]]
* [[Definition:Flood insurance]]
* [[Definition:Private flood insurance]]
* [[Definition:Federal Emergency Management Agency (FEMA)]]
* [[Definition:Catastrophe risk]]
* [[Definition:Government-sponsored insurance program]]
{{Div col end}}

Definition:Write your own (WYO) - Revision history

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