The 2019 flood insurance marketplace is offering unprecedented opportunities for:
- Consumers looking for available and competitively priced flood coverage from a growing list of private insurance companies
- Insurance companies that want to expand into a now profitable private line
- Analytics and modeling firms able to leverage powerful technology into new applications for those insurers
- Brokerages looking to expand beyond the limited National Flood Insurance Program policies
- Resiliency firms offering flood mitigation products and services
- Local Government & Public Sector Organizations looking to reduce their catastrophe exposure, decrease costs, and improve public safety in response to extreme weather
The private flood insurance market is seen as a much-needed alternative to the debt-ridden, outdated, and increasingly expensive federal government’s National Flood Insurance Program (NFIP). Even more so for Florida consumers, who are largely subsidizing the NFIP, receiving just $1 in claims benefits for every $4 in paid premiums.
New modeling technology and in Florida, a welcoming regulatory environment, have caused a doubling of the number of private insurance companies writing flood coverage here in the past two years. Our clients include actuarial experts, disaster modelers, and third-party vendors who are utilizing new technology to better predict and price flood risk – and offering better priced products than the NFIP in many instances.
Private market insurance is just one part of the 21st Century approach to flood protection that Lisa Miller and Associates is using to help its clients. Resiliency efforts are seeing a rebirth, too. With greater coastal flooding, FEMA estimates that for every $1 spent on pre-event mitigation, $6 is saved in insurance claims. If it’s resilient, flood insurance will follow!
Lisa Miller & Associates served as an advisor on passage of Florida’s two key laws (SB 1094 and SB 542) and is now at the center of a team exporting that progressive flood insurance legislation as a model to other states. While Congress works on various NFIP reforms, Lisa Miller, known for her consumer advocacy, is helping clients of all sizes seize the tremendous opportunity for the private market to fill the vacuum and provide consumers improved availability and affordability in flood insurance and greater safety in resiliency. Please check out our efforts and resources below and read Lisa’s latest Risk Management and Insurance Review article.
At Lisa Miller & Associates, we have a passion for policy and client success. Put Our Passion to Work for You – Give Us a Call Today!
As host of The Florida Insurance Roundup podcast, Lisa regularly features topics on flood insurance risk and the need to encourage a vibrant private marketplace.
Lisa’s Blog: New Miami Zoning Tackles Flooding, While NFIP Rate Plan Challenged, April 11, 2019
Risk Management and Insurance Review: Two New Developments Hold Promise for the Private Flood Insurance Market, March 6, 2019
Lisa’s Blog: Exporting Florida’s Model Flood Laws, July 24, 2018
Lisa’s Blog: The Flood Coverage Gap & FEMA’s Aspirations, June 18, 2018
Lisa’s Blog: Changes Coming to the Flood Insurance Marketplace, March 29, 2018
Lisa’s Blog: Rising Sea Levels a Fact in Florida for Now: Legislative Action Underway, August 16, 2017
Lisa’s Blog: Florida’s Private Flood Market Nearly Doubles While National Flood Insurance Reform Makes Bipartisan Headway in Washington, July 6, 2017
- Nearly 60% of Floridians who live in flood hazard zones have no flood insurance
- The other 40% have purchased 1.75 million NFIP policies, paying $962 million in premiums as of January 2018, covering about $434 billion in property value.
- NFIP rates rose an average 8% in 2018 – following rate increases of 18%-25% in recent years – and are expected to rise again in 2019 as part of a risk-rating “redesign”.
- The Tampa Bay area is the third most at-risk area in the country for flood, with almost 460,000 homes at risk from tidal storm surge from the Gulf of Mexico and Tampa and Hillsborough Bays. The cost to rebuild those homes is estimated at nearly $81 billion.
Media Coverage of LMA Efforts on Private Flood Insurance & Mitigation (Resilience)
- Canceling the program’s debt would essentially amount to a $20 billion subsidy of flood claim filers, where “taxpayers who were not affected by instances that caused the event are subsidizing those that were.” Bipartisan Flood Insurance Compromise Gets Lukewarm Reception, Bloomberg Environment, June 11, 2019.
- “The goal is to educate other states’ legislators using language that was tested in Florida.” Spreading Florida’s model laws nationwide, by Lisa Miller, Property Casualty 360, August 20, 2018
- “With Congress once again kicking the can down the road on needed reforms to the National Flood Insurance Program (NFIP) until its next expiration on Nov. 30, the time is ripe for the private insurance market to step up and play a greater role in providing Americans needed flood coverage.” Op-Ed: Florida’s flood laws can be a nationwide model, Miami Herald, August 14, 2018
- “While Congress works on various reforms to the National Flood Insurance Program (NFIP), the time is ripe for the private insurance market to step up and play a greater role in providing Americans needed flood coverage.” Lisa Miller Commentary: How Florida’s Flood Insurance Model Could Work Nationwide, Insurance Journal, August 1, 2018
- “They want people talking about impact windows at their next party,” said Lisa Miller, an insurance industry consultant and one of FAIR’s earliest supporters. “They want homeowners competing not to see who can get the fanciest granite countertops but who will be the first to install hurricane-resistant roof straps and asphalt shingles.” Miller said she looks forward to seeing what Neal and Handerhan can accomplish with the FAIR Foundation’s storm preparedness goals. “Their mission is to make mitigation as cool as Starbucks,” she said. We All Need To Be Storm Preppers, Insurance Watchdog Group Urges, Sun-Sentinel, January 26, 2018
- “Models are important because the NFIP and parent FEMA don’t use models, they use only maps,” said Lisa Miller, a former Florida Deputy Insurance Commissioner. “But models help differentiate the flood risk between a property owner in Zone X with mitigation measures versus another person in Zone X without mitigation and insurance premiums are being priced accordingly and more reasonably by the growing number of private flood insurers entering the marketplace. Consumers are benefiting,” said Miller. Flood insurers in Florida have doubled thanks to technology, Intelligent Insurer, July 20, 2017
Other Lisa Miller & Associates (LMA) Produced Products & Resources
- Florida’s private flood insurance model legislation (through SB 542 and SB 1094 passed in 2014 & 2015 and HB 813 in 2017) in Section 627.715, Florida Statutes
- Flood Insurance Model Legislation for the U.S. (revised), presented to the National Council of Insurance Legislators, July 2019
- A Floodie Future: Report from the NCOIL Meeting, LMA Newsletter, July 15, 2019
- State Laws and Regulations Related to Flood Insurance, Milliman, via the National Association of Realtors, July 8, 2019
- Actions for State Regulators in Building the Private Flood Insurance Market, National Association of Insurance Commissioners (NAIC), July 2019
- 2018 State of U.S. High Tide Flooding with a 2019 Outlook, National Oceanic and Atmospheric Administration, June 2019
- Flood Insurance Model Legislation for the U.S., presented to the National Council of Insurance Legislators, July 2018
- Private Flood Insurance Rate Comparison to NFIP Rates
- The 21st Century Flood Reform Act passed by the U.S. House of Representatives on November 14, 2017 (awaits Senate consideration)
- Flood Insurance: Comprehensive Reform Could Improve Solvency and Enhance Resilience, U.S. Government Accountability Office report on the NFIP, April 27, 2017
- FEMA webpage on NFIP Reform
- Florida Office of Insurance Regulation’s list of flood insurance writers in Florida
- Top 10 Facts About the National Flood Insurance Program, LMA’s Florida Insurance Roundup podcast, July 2017
- The Flood Risk Mitigation Act of 2017, draft bill by the U.S. House of Representatives as of summer 2017, which would require communities to create plans to mitigate high concentrations of multiple-loss properties
- The House Select Committee on Hurricane Response and Preparedness Final Report, Florida House of Representatives, January 16, 2018
- State of Florida Action Plan for Disaster Recovery submitted to FEMA, May 2018
- Flood Risk Underestimated in Florida’s Panhandle from Hurricane Michael, LMA Newsletter, November 19, 2018
- States’ Lawmakers Consider Florida’s Model Flood Legislation LMA Newsletter, July 16, 2018
- FEMA Risk Ratings Changing, LMA Newsletter, July 16, 2018
- Florida at Highest Risk for Future Tidal Flooding, LMA Newsletter, July 2, 2018
- National Flood Program Facing Another Expiration, LMA Newsletter, June 18, 2018
- The Flood Coverage Gap & FEMA’s Aspirations from the National Flood Conference, LMA Newsletter, June 18, 2018
- Mitigation: As Cool as Starbucks®, LMA Newsletter, June 18, 2018
- Sea Level Rise Impacts on Insurance and Real Estate, LMA Newsletter, May 7, 2018
- NFIP Restrictions Easing on Homeowners and Agents, LMA Newsletter, April 23, 2018
- FEMA to Provide Some NFIP Data to States, LMA Newsletter, April 9, 2018
- This Spring is All About Flood, LMA Newsletter, March 26, 2018
- The Private Flood Insurance Market Gets a Boost From Verisk, LMA Newsletter, January 22, 2018
- 12 Counties Account for a Third of U.S. Flood Insurance Claims, Zillow Research, November 16, 2017
- Since 1978, 12 Counties Have Accounted for a Third of U.S. Flood Insurance Claims, Forbes, November 16, 2017
- Irma Flood Losses Could Exceed Wind Losses in Places, LMA Newsletter, October 16, 2017
- Those Without Flood Insurance Face Tougher Road Ahead in Irma Recovery, LMA Newsletter, September 18, 2017
- FEMA-NFIP and Florida OIR Ease Regulatory Restrictions on Claims Submissions and Policies, LMA Newsletter, September 18, 2017
- Why Federal Flood Program Is Sinking Deeper Into Debt: CBO Report, Insurance Journal, September 5, 2017
- Still Think You Don’t Need Flood Insurance?, Sun-Sentinel, August 30, 2017
- Aligning Natural Resource Conservation, Flood Hazard Mitigation, and Social Vulnerability Remediation in Florida, Journal of Ocean and Coastal Economics: Vol. 4: Iss. 1,
Article 4. Summer 2017 (This research found Florida has 15,000 “Repetitive Loss Properties”. Those properties collectively filed more than 40,000 claims against the National Flood Insurance Program between 1978 and 2011 – more than 1,200 claims per year, on average.)
- Flood Insurance: Potential Barriers Cited to Increased Use of Private Flood Insurance, Congress’ General Accounting Office, July 14, 2016