A key point not included in the title is the potential 20% discount off NFIP rates that Neptune may give to lower risks in low risk flood zones. I wonder if part or all of that is due to the subsidies (supposedly) built into the NFIP rates? If so, I see an exodus of lower frequency risks from NFIP to private insurers if the rate gap is significant and common for low risk flood zones. What would result is a death spiral for NFIP, similar in nature to the same Death Spiral that happened to the ACA’s taxpayer-subsidized CO-OPs.
Neptune Flood = not a good name for a flood insurance company. Just my $.02.
A key point not included in the title is the potential 20% discount off NFIP rates that Neptune may give to lower risks in low risk flood zones. I wonder if part or all of that is due to the subsidies (supposedly) built into the NFIP rates? If so, I see an exodus of lower frequency risks from NFIP to private insurers if the rate gap is significant and common for low risk flood zones. What would result is a death spiral for NFIP, similar in nature to the same Death Spiral that happened to the ACA’s taxpayer-subsidized CO-OPs.
Re: my comment on NFIP rate subsidies (surcharges), from Sept., 2017:
https://www.insurancejournal.com/magazines/features/2017/09/18/464180.htm
Also, above should read ‘…low risks in lower risk flood zones…’ Bear culpa.