New product set to complement the NFIP
Hiscox Re has today launched a new flood product to help address the flood protection gap in the US.
The Bermuda-based reinsurer has collaborated with ILS and its insurance carrier partners to provide the new US personal lines flood product, FloodXtra.
The product launch is timely, with the US’s embattled Nationals Flood Insurance Program (NFIP) accruing an estimated $7bn - $10bn in losses from Hurricane Harvey. The program is currently in $25bn worth of debt.
According to a Hiscox Re representative: “Flooding is the most common natural disaster in the US, affecting every region and state, yet less than 12% of American homeowners have a flood insurance policy. Currently more than 20% of NFIP flood insurance claims come from homes considered to be in low to moderate risk flood areas, where insurance take up is below 2%.”
FloodXtra provides insurance carrier partners with rates, rules, forms, a ready-to-use underwriting portal and pricing system, and quota share reinsurance with up to 100% cession to Hiscox Re.
Hiscox Re head of north American underwriting Bevis Tetlow said: “Recent events have highlighted the inadequacy of flood insurance provisions in the US. The market is deregulating and the good news for consumers is this will give them a greater choice of flood cover. FloodXtra is part of this solution, allowing our carrier partners and ILS investors to leverage our in-house flood analytics and proprietary technology, which in turn boost US homeowners’ resilience to flood.”