PIANY Director and MetroRAP Committee Chair Michael P. Cracco was master of ceremonies.

While enjoying a lavish lunch, participants listened to the keynote presentation by Stephen Kempf, Jr. regional administrator of the Federal Emergency Management Agency, a foremost expert on disaster preparedness in the New York Metropolitan region. Kempf’s speech complemented the two continuing education courses on flood insurance and errors and omissions coverage.

During his address, Kempf noted that, as ombudsmen to the industry, both FEMA and professional insurance agents have similar goals of educating their mutual customers. And, he said, he would like to work with the association to raise awareness about benefits FEMA’s Flood Insurance Program can bring to communities.

Stephen Kempf, Jr. regional director of the Federal Emergency Management Agency, a foremost expert on disaster preparedness in the New York Metropolitan region presented the keynote address.

“We are similar to a brokerage agency, in that we don’t own our own resources,” Kempf said. “We work closely with other federal agencies and state and local emergency management agencies to provide resources needed when we’re besieged by disaster,” he explained, and he said, FEMA is similar to an independent agency, which works directly with insureds, yet is not the primary resource for claims or underwriting. “We are not an insurance company. We are restricted by law to provide a maximum benefit of $28,500 per individual.”

Kempf reached out to the PIA membership, “I would like to team up with the PIA to forward our similar goal of education,” he said. Promising to work closely with the association’s officers in future endeavors, he spoke during his address about FEMA’s Community Rating System administered through the NFIP, as PIA members can assist in getting the word out about this valuable assistance New York state communities from which can benefit.

The agency’s emphasis is on disaster preparedness, Kempf said, “We provide public and individual assistance in the event of a presidentally declared disaster,” as well as offering grants to promote risk reduction and mitigation. The CRS, which was implemented in 1992 as a program for recognizing and encouraging community floodplain management activities that exceed the minimum NFIP standards, is one of the tools in FEMA’s quiver for disaster preparedness.
Proving the need to increase awareness about the CRS, Kempf asked the audience to indicate if they had ever heard of it; few in the room had. Further emphasizing his point, Kempf reported that of 1,472 communities in New York state, only 27 currently participate in the CRS.

Those communities that don't participate in the program are missing an opportunity to recognize 5 to 10 percent discounts and potentially greater reductions, in insurance rates; in addition to valuable flood risk reduction and mitigation. Under the CRS, Kempf explained, flood insurance premium rates are adjusted to reflect the reduced flood risk for communities, as a result of community activities that often are already taking place. These activities meet three goals, including reduction of flood losses; facilitation of accurate insurance rating; and to promote the awareness of flood insurance.

“The CRS is a win-win proposition and I encourage all municipalities to investigate it,” Kempf said.