• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • MENU

62 Million Residences at Flood Risk

SHARE THIS

Opportunities in private market solutions

Photo by designer491/Shutterstock

In the wake of bigger and wetter storms, the personal property insurance market is beginning to realize the importance of offering viable private flood market solutions as an alternative and complement to federal flood insurance.  A new report out by Verisk is revealing the true need – and opportunity – that exists in the marketplace.  It shows 62 million residential homes in the U.S. at risk of moderate to extreme flooding with a premium potential of almost $42 billion for owner-occupied residences.

The Verisk analysis, Sizing the Personal Flood Insurance Market, estimates that reviving the private flood insurance market could generate $41.6 billion in written premiums for insurers from owner-occupied homes in the 48 contiguous states.

“The need for flood insurance far exceeds the current take-up rate,” said Marc Treacy, managing director of flood insurance at Verisk, in a release. “Our study shows just how many homeowners are at significant risk for flooding and how big the opportunity is for insurers looking to find a new avenue for growth.”

September 19, 2018 – Hurricane Florence flooding in Robeson County, NC. Courtesy FEMA

Over the past half century, personal flood insurance in the United States has been largely confined to the National Flood Insurance Program (NFIP). But as the NFIP faces growing financial strain in the wake of massive storms, the industry has come to understand the benefits of having a robust private market insure against the peril.  We’ve proven that here in Florida, with the help of a welcoming regulatory environment.  The number of private companies writing flood coverage in Florida has doubled in the past two years.

Through the National Council of Insurance Legislators (NCOIL), we’re attempting to create a private flood insurance model bill that other states can adopt to promote their own marketplace.  We’re pleased to report that South Carolina is moving forward on its own to draft such a bill for consideration in its 2020 state legislative session.

Doing so, improves the availability and affordable of flood products.  Here in Florida, there’s also continued efforts to create a more informed insurance consumer.  The Federal Association for Insurance Reform (FAIR) has an effort underway, as noted in this Insurance Journal commentary, urging Florida lawmakers to implement consumer-centric public policy, such as required flood disclosure, that provides Floridians with confidence and protection in the home buying and renting process.

This latest research from Verisk, a worldwide data analytics provider, not only provides a true ground-up estimate of the premium potential but also showcases how insurance companies can pinpoint areas of opportunity and hazard at the state and county level.

LMA Newsletter of 8-26-19

SHARE THIS

Tags: Federal Association for Insurance Reform, Model Private Flood Insurance Law, National Council of Insurance Legislators, National Flood Insurance Program, NFIP, Private flood insurance, Verisk

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2023
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts