PIA National wants flood insurance reforms. On its website PIA National said it is, “Working with members of Congress to support legislative solutions to create sensible options for growing the private flood insurance market, promoting flood risk management policies, transitioning to risk-based rates and reforming the NFIP.”
The reformation of the NFIP — or the National Flood Insurance Program as it is known — is a top priority of not just the PIA but of other insurance groups, realtors and realtor groups, consumer groups and environmentalists.
One of the keys to that reformation is getting actuarily sound rates for homes and businesses needing flood insurance. Another key is transferring — as the PIA National quote says — risk to the private insurance market.
That is already happening.
Insurance Journal’s Top Private Flood Insurers 2017 Market Study was released a couple of weeks ago and it said 50 new carriers added private market flood insurance to their lineup of products in 2017. Those 50 carriers had:
• $630 million in written premiums
• That’s a jump of $217 million over what was written in 2016
Most of that premium growth — 98% — came from five major carrier groups:
Most of the flood insurance written on the private market was in commercial lines. That figure was 64% and that is down from 66% in 2016.
In 2017 the top-five writers of direct written premium in the commercial market:
FM Global — $263,281,599
Zurich Re — $63,839,162
Berkshire Hathaway — $27,603,275
RSUI — $13,224,505
Allianz — $11,704,696
In 2017 the top-five writers of direct written premium for private flood insurance in the residential market:
Assurant — $89,826,939
AIG — $58,245,862
Swiss Re — $41,571,428
Chubb — $9,977,894
Liberty Mutual Fire — $8,849,770
The report said last year 10 states experienced private flood insurance grow in excess of $5 million in new business. This is based on direct written premiums:
Florida — $36.5 million
California — $23.1 million
Texas — $20.7 million
New York — $20.2 million
New Jersey — $11.8 million
The report is fascinating. You can click here to download the report for free.
Source links: Insurance Journal, Carrier Management