Private Flood Insurance Market Is Getting Bigger, More Competitive, Less Profitable

By | March 18, 2018

  • March 19, 2018 at 8:41 am
    DNCs Coll(F)usion GPShip Strzok an IceberGowdy says:
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    Growth of private Flood insurance is good. But I await the day when NFIP is a tiny percent of the market, and US taxpayer’s subsidy is insignificant, as it should be. I may have more comments later today about the stats published herein, but one stat standing out is the relatively small penetration of insurers in the Florida market. It’s obvious why that is the case. More effort is needed to move out of NFIP toward private markets in Florida and a few other states. That presents a challenge to private industry insurers, which may be a long-run reward to those clever enough to solve/ mitigate the conflagration issue.

  • March 19, 2018 at 10:13 am
    Ray Lehmann says:
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    As a percentage of total premium, private flood is still a relatively small part of the overall market in the Florida. However, it should be noted that Florida’s private flood insurance market is larger than any other state, and it grew by the most (on a premium dollar basis) of any state from 2016 to 2017. Florida has done the most to create a regulatory framework that allows both speed-to-market for excess and surplus lines flood products, as well as the certainty and transparency of a standalone admitted market product.

  • March 31, 2018 at 8:45 pm
    George Campbell says:
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    You can make good money by carefully selling flood insurance only to properties that are unlikely to flood. Insuring people that might actually flood, given the climate change occuring, would be financial suicide. Private companies that have good data and smart software and selectively insure properties can do OK. But otherwise this is fool’s gold.



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