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The Private Flood Insurance Market — It’s Growing

Posted By Administration, Wednesday, July 11, 2018

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:


Zurich Re

FM Global

Liberty Mutual

Berkshire Hathaway


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

Tags:  Insurance Content  Insurance Industry  Insurance News  The Private Flood Insurance Market — It’s Growing  Weekly Industry News 

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