Don’t get caught in the rain: How to get into the private flood market now

  • By James Barber, MBA
  • 16 July 2021

On July 20th at 12pm EST, a panel of leading industry experts from Milliman, Swiss Re and Flood Service Corporation will host a webinar discussing key components of how to develop a profitable private flood insurance program. The presenters will talk about some of the efforts and challenges to get into the market and how many of these can be overcome with modern approaches crafted to address the complex flood peril.

Click here to watch the webinar recording

Why is this webinar timely? Because the private flood insurance market holds tremendous growth opportunities, and your current customers need better coverage.

The Growth Opportunity

Historically, the flood peril has been considered uninsurable by the US private insurance market. In recent years the flood market has changed and is much more accessible, made possible with the advent of improved risk modeling, enhanced data collection and new developments within insurtech. Private insurers, reinsurers and managing general agents are entering the private flood market in growing numbers.

Some recent statistics highlight this actively evolving industry niche and its enormous upside potential:

  • In 2020, the number of private carriers writing flood insurance grew to 189, over four times the 2016 figure of 45 companies writing in the market.
  • Milliman estimates the potential residential flood market to be between $37 and $47 billion in premiums.
  • As compared to the 2020 homeowners direct written premium of $110 billion for US homeowners insurance, the flood market offers huge growth potential for private insurers.

The outdated perception about flood being uninsurable is no longer true, but perceptions are still lagging and insurers can get stuck at the point of understanding where to start.

Changing the Insurer Mindset

  • Barriers to flood market entry are dropping, and insurers are taking advantage of this new opportunity.
  • The choice to avoid flood does not avoid risk, it just comes with a different set of risks.
  • There are multiple accessible paths to start a flood program successfully and easily.

In this one-hour webinar, you will learn:

  • What are the converging forces driving growth and interest in the private flood market.
  • How to begin the journey into flood and understand the categories of flood products available.
  • How private flood insurance policies can be accepted by lenders and regulators, while providing better coverage options than those available from the NFIP.
  • How a simplified flood solution could help you navigate the regulatory environment more quickly, get a product to market faster and obtain crucial reinsurance protection.

Click here to watch the webinar recording

First, Milliman’s Dave Evans will overview the key changes that have driven the development of the private flood market and share his research on flood market size and growth. Dave will discuss the challenges and key items insurers need to understand about creating a product that provides better coverage, drives profitable revenue, arrives quickly to market and is flexible enough to build in insurers’ unique risk appetites and competitive differentiators. For insurers uncertain about how to dive in with your own flood product, Milliman’s flood experts are prepared to collaborate with you and help find the best path forward for your flood journey.

Next, Flood Services Corporation’s Kyle Stuart will provide a detailed overview of the unique issues regarding flood coverage compliance with federal lending requirements. He will focus on how to get flood forms to market that are:

  • Better for the customer – with flexible coverages defined appropriately for the private market
  • Pre-approved by state regulators
  • Accepted by lenders

Finally, Matt Junge will share Swiss Re’s experience in building and launching a scalable flood solution, including product pricing, forms and reinsurance support. Matt will describe the complex challenges insurers face and Swiss Re’s approach to address them via a simplified product that removes initial regulatory and execution barriers. He will build a compelling case for how this product provides much needed coverage and makes the world more resilient.

This timely webinar is about turning risk into opportunity. Insurers have an opportunity to address a growing need to serve their customers, with more confidence and speed than ever before.

Ready to learn more about starting a Private Flood Insurance Program? Let's chat!

About the Presenters

Dave Evans is a consulting actuary with the Property and Casualty Practice in Milliman’s San Francisco office. His experience is primarily in personal property and casualty insurance and has published articles and given presentations on predictive modeling, flood, earthquake, and countrywide catastrophic risk. Prior to joining Milliman, he was lead actuary at Geovera Holdings, Inc.

Matt Junge is SVP and head of Property Solutions for Swiss Re America, leading the development of private flood, parametric, and analytic solutions. He has twelve years of experience in treaty reinsurance and leads a team responsible for underwriting, pricing, and analysis of property treaties for clients across the United States.

Kyle Stuart is President of Flood Service Corporation and has more than 27 years of insurance experience overseeing portfolios with a magnitude of $10 million to $220 million. He has extensive experience involved with operations, underwriting, agent administration, regulatory compliance, budget projections, selection and negotiation with business partners, reinsurance, finance, marketing, claims and catastrophe modeling.

To reserve your seat for this webinar, click on the link below. Can’t attend the live webinar? You can still sign up to receive the recorded webinar.

Click here to watch the webinar recording

Need more information?
  • Learn more about Flood Insurance Consulting Services
  • Speak with a Flood Insurance Consulting Specialist

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