Marsh McLennan’s Kaniewski calls for collaboration and resilience efforts in FEMA reform

By Mia MacGregor

March 4 - (The Insurer) - The Federal Emergency Management Agency should not be viewed as the US government’s cash machine but instead as its risk manager, according to Marsh McLennan's public sector managing director Daniel Kaniewski.

Kaniewski testified as a witness at a March 4 hearing titled, Future of FEMA: Perspectives from the Emergency Management Community. The hearing aimed to evaluate FEMA’s role, particularly its management of taxpayer dollars, its expanding mission set and coordination with state and local governments in response to natural disasters and emergencies.

“I believe that FEMA should not be viewed simply as the federal government's ATM reimbursing states for their costs, but instead positioned as the nation's risk manager,” Kaniewski stated.

He said resilience "must be our collective North Star, whereby we reduce the physical and financial impacts of disasters and transfer these risks off the backs of disaster survivors and the federal balance sheet".

“But to do so, we must be prepared to match the magnitude of risks we face with the magnitude of effort required to manage them.”

Kaniewski pointed out that FEMA’s grant programmes both incentivise and disincentivise resilience investments by state and local governments.

He argued that FEMA’s Public Assistance Program largely disincentivises resilience because it acts as a de facto insurance policy for state and local governments.

In contrast, FEMA’s pre-disaster programmes, such as the Building Resilient Infrastructure and Communities hazard mitigation scheme, encourage resilience by providing funding that saves taxpayer dollars and reduces disaster suffering, Kaniewski said.

He also noted that the private sector plays a critical role in fostering resilience, particularly in finance, insurance and real estate.

“These sectors should view themselves as co-beneficiaries of resilience investments and therefore should find ways to encourage individuals, businesses and governments to make these investments,” Kaniewski stated.

Acknowledging that FEMA could benefit from reforms, he emphasised the importance of pre-disaster resilience efforts.

“FEMA is most often associated with disaster-response missions. Recent major disasters such as hurricanes Helene and Milton and the LA wildfires demonstrate why … But I strongly believe that what FEMA does before a disaster strikes is equally important,” he said.

He noted that, like FEMA, “the insurance industry is at a crossroads”.

“Given the recent deluge of disasters, from flooding to hurricanes to wildfires, there's a pressing need for proactive measures to mitigate risks and safeguard the well-being of our communities,” Kaniewski said.

OPERATIONAL CHALLENGES AND STAFFING REDUCTIONS

Additionally, Kaniewski highlighted FEMA’s operational challenges, particularly when responding to multiple major disasters.

“At various times, we've seen FEMA stretched thin. That most often takes place when there's a major disaster, especially when there are multiple major disasters,” he said.

“In 2017, when I was at FEMA, we saw back-to-back hurricanes. When you have that, you simply can't recover. And that applies not just to FEMA, but also to the state and local governments that have been directly impacted.”

During the hearing, Representative Timothy Kennedy of New York’s 26th District and ranking member on the Subcommittee on Emergency Management and Technology raised concerns about staffing reductions under the Trump administration.

Kennedy stated that the administration had fired 200 FEMA employees and pushed out 800 more under Elon Musk’s DOGE program.

He also said that President Trump had taken measures to reduce staff at agencies that provide support to FEMA, including the National Oceanic and Atmospheric Administration.

Reportedly, approximately 800 probationary employees at NOAA were fired and another 500 resigned, according to Kennedy.

“Such mass exoduses from essential agencies not only weaken our disaster response and preparedness capabilities but also jeopardise public safety and economic stability,” Kennedy said.