Actuarial Assumptions and Methods - Technical Documentation

This document outlines the actuarial assumptions and methods used to develop rates for the National Flood Insurance Program (NFIP) rates that are effective October 1, 2013. NFIP insurance rates are published in two documents, The October 1, 2013 Flood Insurance Manual (FIM) and the October 2013 Specific Rate Guidelines (SRG). The FIM is used to set rates for most of the NFIP’s policyholders. The SRG historically has been used by insurers to calculate premiums for a variety of special cases that have a much higher risk of flood damage than typical -- even within the Special Flood Hazard Area. Included in the SRG are the rates for buildings that are not using pre-FIRM subsidized rates and are not using grandfathered zone and elevation based rates but are instead rated based on a lowest floor elevation that is below the Base Flood Elevation (BFE).