Advances in catastrophe models and new state insurance regulations have opened the door for an affordable, risk-based private insurance market in Florida. This reading list highlights articles focusing on various issues and implications related to the market. The articles feature Milliman consultants Nancy Watkins and Matt Chamberlain, whose knowledge and experience is helping insurers to understand and price flood risk more precisely.
• Forbes: “The private flood insurance market is stirring after more than 50 years of dormancy”
The reemergence of private flood insurance has piqued the interest of carriers seeking to enter the market. Some catastrophe (CAT) modeling companies are creating flood models to help insurers price policies. Here’s an excerpt:
Nancy Watkins, a principal consulting actuary for Milliman, likened the current level of interest from insurers to enter the private flood insurance market to popcorn.
“We are at that stage where you can hear the space between pops. You can hear one kernel at a time,” she said. “What I think is going to happen is, in one to two years, there’s going to be a lot more going on.”
• Bradenton Herald: “Important for homeowners to compare flood insurance options”
Florida homeowners must consider the issues related to the National Flood Insurance Program (NFIP) and private flood policies. Private insurers can use predictive modeling technology to determine a home’s distinct flood risk.
• Tampa Bay Times: “Remember the flood insurance scare of 2013? It’s creeping back into Tampa Bay and Florida”
Real estate and insurance experts comment on the possible effects that high flood insurance rates may have on homeowners. Insurers express interest in the granular modeling of flood-prone territories.
• Tampa Bay Business Journal: “Why some Tampa Bay property insurers are offering flood coverage and others are not” (subscription required)
Insurers need to weight the risks and rewards associated with the underwriting of flood insurance. A few carriers have already decided to participate in Florida’s private flood insurance market.