The private flood insurance market has been growing but 2023 may provide a real test following Tropical Storm Hilary in California as well as future storms that may come during the remainder of the Atlantic hurricane season.
According to AM Best, the federal National Flood Insurance Program’s (NFIP) use of new data, models, and technology incorporated within its Risk Rating 2.0 underwriting methodology has moved premiums higher to reflect true flood risk, although increases are capped at 18% per year. This has made private flood insurers more competitive.
