Because I would bet FEMA is the insurer of last resort and they have to take a much wider band of applicants - and they have to balance their books according to federal regulations. So FEMA ends up with a lot of people who can;t get flood insurance anywhere else because the regular insurers have pulled out of the market.

I expect if you read through their financials you would see exactly how much they took in in premiums and how much they paid out. All,of that is publicly record and available for review if you want to review it.

Florida has this problem right now where the state insurer of last resort is caught having to many applicants and having to cover much more than it had ever anticipated. And this is because the normal insurance companies are either pulling off the coast of Florida or out of the state entirely.