Private Flood Insurance Coverage – Insurers Ready to Plunge into Flood Market
The National Flood Insurance Program (NFIP) has been the dominant force in the Flood Insurance Marketplace for more than 50 years, but Wright National Flood Insurance Services is working on behalf of consumers to provide more accessible private flood insurance coverage options.
In today’s world, consumers have more choices than ever before. No matter what the product or service, widespread access to information and the ability to research have pushed companies and industries to stay competitive. Recently, Wright National Flood Insurance Services has developed exciting new private flood insurance coverage options to meet this need.
With FEMA’s “Moonshot Goal” to double the number of consumers who have flood insurance by 2023, Wright is looking to lead the way with more affordable, accessible private flood insurance coverage options.
In this article from Insurance Journal, Wright Flood Executive Vice President and CMO G. Michael Sloane shares why more private flood insurance coverage options can close the protection gap and help more Americans recover in the wake of a flood disaster.
If you are interested in learning more about the private flood insurance options Wright offers, or you would like to become a Wright Flood Agent, please call (866) 373-5663 or visit the “Represent Us” page on WrightFlood.com.
By Andrea Wells
More Than the NFIP
While the NFIP insures about five million policyholders, the opportunity for private market spans far beyond that, experts say.
There will always be a need and a place in the market for the NFIP, according to G. Michael Sloane, executive vice president and chief marketing officer of Wright Flood, one of the largest flood providers in the nation. Wright offers federal, excess and private flood insurance, rated A- (Excellent) by A.M. Best, and claims to have written the first-ever flood policy through the NFIP.
“We are strong believers that we will continue to grow the NFIP book and that marketplace will always be there. But we also have financial partners that allow us to be able to offer flood in the private market,” Sloane said. “We are going to go full throttle to continue to grow the NFIP book and provide a private flood alternative for those that want to pursue that course.”
Sloane doesn’t know how much of the NFIP book of business will be viable for the private market but he believes there’s no doubt that some could be moved out of the federal program. However, the real opportunity will come from outside of the NFIP, he said.
“What I think is going to happen and what is incumbent upon us as an industry and those that are offering a private flood alternative program is to grow that base outside of the NFIP, not just concentrate on what’s there already,” he said. “Some 25 percent of all flood losses happen in non-required flood zones, or what we call preferred risks. And that’s just those that have insurance. There are literally thous ands more [properties] that didn’t have any type of coverage or thought they had coverage or didn’t underst and coverage. That’s where we really have to grow as an industry and I think competition and the private market can help stimulate that more.”
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