Please call Lee at Acentria Insurance at 954-351-1960 for free quotes and information on Home Insurance, Flood, Private Flood, Auto, Business & Commercial and Life, Financial and group benefits  as well.

Florida’s efforts in establishing a private flood insurance market have been hailed as a model by many other states looking to buff up their flood insurance offerings, as well as the National Flood Insurance Program (NFIP) to follow as lawmakers hammer out its upcoming reauthorization.

A word from our sponsor:

Click here for more info.
Join Insurance Journal’s community dedicated to helping agents find markets.
Sign up is free. It takes less than 60 seconds.

But some insurance companies are still standing on the sidelines of Florida’s flood market pool, saying it’s not a risk they are ready to write.

At a recent flood insurance conference put on by the Florida Association for Insurance Reform (FAIR) in St. Petersburg, a panel of executives from four Florida-based companies and one national broker discussed their reasons for writing — or for not writing — flood insurance.

“I have not seen a predictable flood model, and I have not seen predictable pricing in reinsurance coverage for that risk. If I don’t understand a peril — I can’t quantify it, know what my exposure is — I am just simply not going to write it,” said Bruce Lucas, CEO and chairman of Florida homeowners insurer Heritage Insurance. “I’ve got some fundamental principles I follow in the business world and I have to fully understand what I’m getting into to do it.”

Locke Burt, chairman and president of Security First Insurance, another Florida-based homeowners insurer that doesn’t write flood coverage, said lack of demand from customers and regulatory hurdles make it difficult to do anything in the flood insurance space.

“There is a reluctance to innovate in Florida. Most of the companies who have filed a product have simply copied the NFIP program,” he said.

Florida’s high risk of storm surge, he said, is another challenge with flood because it is incredibly difficult for the private market to model and accurately price. He said storm surge is an example of why there will always be a role for a federal flood market

Please read the full article below;

http://www.insurancejournal.com/news/southeast/2017/07/27/459034.htm

Advertisements