The private flood market is growing and profitable, according to Insurance Journal’s recent report on “Top Private Flood Insurances, 2017 Market Study.” Here are the top six facts from the report.
– 1 – During 2017, the private flood market expanded considerably with 50 new companies reporting to the NAIC as writing private flood coverage. In total, insurers reported direct private flood insurance premiums written of $630 million, an increase of $217 million over 2016.
– 2 – Though the flood insurance market saw many new entrants in 2017, 98 percent of the growth was attributed to five major carrier groups: Assurant, Zurich Re, FM Global, Liberty Mutual and Berkshire Hathaway.
– 3 – The 2017 top five writers of direct written premium for private flood insurance in the commercial market were: FM Global ($263,281,599); Zurich Re ($63,839,162); Berkshire Hathaway ($27,603,275); RSUI ($13,224,505); and Allianz ($11,704,696).
– 4 – The 2017 top five writers of direct written premium for private flood insurance in the residential market were: Assurant ($89,826,939); AIG ($58,245,862); Swiss Re ($41,571,428); Chubb ($9,977,894); and Liberty Mutual Fire ($8,849,770).
– 5 – In 2017, 10 states experienced private flood insurance growth in excess of $5 million in new business written. These states represent 63 percent of all business written in 2017 – Florida; California; Texas; New York; New Jersey; Ohio; Louisiana; Massachusetts; Pennsylvania; and Georgia.
– 6 – The private flood insurance market has been making significant in-roads during the past year when compared against the National Flood Insurance Program (NFIP). As of March 2018, NFIP premiums written reached $3.55 billion, an increase of $11 million over March of 2017. Combined, surplus lines premium and direct private flood insurance premiums written increased $250 million to $1.028 billion, gaining 22 percent of the overall market.
The full report can be downloaded for free here: Insurance Journal’s Top Private Flood Insurers 2017 Market Study.