Neptune Flood, a U.S. flood insurance provider owned by Neptune Insurance Holdings, Inc., has responded to the FEMA Review Committee’s report to the President on the future direction of the National Flood Insurance Program (NFIP) by expressing support for proposals aimed at increasing private sector participation in the flood insurance market.
In a statement, Neptune Flood said it welcomed the council’s recommendation to expand the role of private insurers within a more resilient national flood insurance framework.
The company said it is ready to contribute to these efforts by offering more modern and competitively priced flood insurance products to U.S. homeowners.
Neptune Flood points out that more than 15 million flood-affected properties in the United States currently lack insurance. The company said increasing flood insurance penetration remains one of the most important measures to strengthen the financial resilience of households, local communities and the wider economy.
Neptune Flood said a joint approach between NFIP and private insurers could help expand the insurance market while improving protection against flood-related losses.
The company said private flood insurance has helped expand coverage for policyholders and reduce costs. Neptune Flood said its internal survey results showed nearly half of NFIP clients could lower their premiums by switching to private insurance, while nearly two-thirds of new policyholders could obtain cheaper coverage through the private market.
The company also highlighted that private flood insurance providers are able to offer features not currently available under the NFIP, including increased coverage limits and the option to reimburse temporary accommodation costs following flood damage.
Neptune Flood further stated that the private flood insurance market has developed sufficient scale to support a significant proportion of U.S. homeowners. According to the company, approximately 95% of residential and commercial properties currently insured under the NFIP will also meet eligibility requirements for private flood insurance. In the meantime, Neptune Flood said the NFIP will continue to play a necessary role in ensuring that properties that do not fall under private market underwriting standards can still be insured.
“Expanding the role of the private flood insurance market is a critical step toward a more sustainable national flood insurance system,” said Trevor Burgess, Chairman and CEO of Neptune Flood. “Private providers bring capital, advanced risk models and improved consumer choice to the market. At the same time, the NFIP remains an important safety net for properties that are not yet privately insured. Together, the two can create a stronger, more resilient flood insurance framework for the country.”
Neptune Flood said it currently insures more than 300,000 policyholders nationwide through its Triton® underwriting platform, which assesses flood risk and distributes policies through a group of 42 insurance and reinsurers globally. The company said these insurers provide underwriting capacity and assume underlying insurance risk, supporting the growth of private capital in the U.S. flood insurance space.
The company also said its products are distributed through a nationwide network of independent insurance agents, with more than 45,000 insurance professionals using the Neptune platform to place private flood insurance for clients. Neptune Flood said the network’s continued growth reflects the insurance market’s growing confidence in the long-term viability of private flood insurance solutions.
Matt Duffy, president of Neptune Flood, added: “The FEMA review committee’s recommendations highlight how mature the private flood insurance market is and why it can play a greater role in the future.”
“Over the past decade, we have seen the ecosystem around private flood insurance continue to grow. Today, more than 45,000 insurance professionals nationwide use the Neptune platform, which connects policyholders to the capabilities of more than 42 global insurance and reinsurance companies and serves more than 300,000 policyholders across the United States. We believe the level of engagement from agents, insurers, reinsurers and consumers reflects growing confidence in private flood insurance as a sustainable and scalable complement to the NFIP.”
Neptune Flood said the FEMA Review Committee report creates opportunities for closer collaboration between public and private sector stakeholders to increase the availability of flood insurance and strengthen the nation’s resilience to flood risks.
The company added that combining the stability of the NFIP with the technology, capital and underwriting capabilities of the private market can support the development of a more sustainable flood insurance system while increasing the number of protected properties across the United States.
The statement follows the recommendation of a FEMA review committee that reforms to the National Flood Insurance Program (NFIP) are needed, including a greater role for private insurers, to support a more sustainable and resilient U.S. flood insurance market.
