New York partner Tom Dawson was quoted in an article on the private U.S. flood insurance market published by The Insurer. According to the National Association of Insurance Commissioners (NAIC) property casualty committee, private flood insurance premiums increased 9 percent in 2018. The report revealed that the number of insurers who wrote flood insurance also increased.
The NAIC report is limited to only those insurers required to file an annual statement with the NAIC, so it does not include surplus lines insurers, a potentially large share of the market. Given this, a number of caveats must be considered when analyzing the NAIC data.
According to Tom, regulators think that at least 15 percent of what is written in the private insurance marketplace is surplus lines. “It would make some sense that it’s about that, but they don’t know. So we’re on the cusp of having regulators ask the industry for a lot more information about what [insurers] write in the way of flood insurance.”
To read the article: https://www.theinsurer.com/news/private-us-flood-insurance-market-grew-9-in-2018-naic/3362.article (subscription required).