What entity provides 100% reinsurance for the WYO program?

The correct choice is FEMA, the Federal Emergency Management Agency. In the context of the Write Your Own (WYO) program, FEMA plays a crucial role in offering 100% reinsurance to participating insurance companies. This program allows private insurance companies to sell flood insurance policies in collaboration with the National Flood Insurance Program (NFIP). By providing full reinsurance, FEMA not only protects these private insurers against substantial losses from flood claims but also ensures the sustainability of flood insurance coverage across the nation.

This arrangement encourages private companies to participate in the WYO program, thereby increasing accessibility to flood insurance for property owners while the federal government retains the ultimate financial risk for flood claims. While other entities such as state governments and organizations like the American Red Cross are involved in various aspects of disaster response and insurance programs, they do not provide reinsurance under the WYO program framework.