Milliman, today announced a new flood product available through its open advisory and rating organization, Milliman Appleseed.
The new simplified product offering was developed by Swiss Re to provide flexible coverage for low and moderate flood risks. Using Milliman Appleseed, a new advisory organization licensed to submit loss costs, rating factors, and risk scores with state insurance regulators across the U.S, go-to-market time is greatly reduced.
This new simplified offering leverages Swiss Re’s proprietary flood modeling for rating purposes and pairs it with customized policy forms developed by Flood Services Corporation. Swiss Re’s clients will be able to license rates and forms to offer them alongside homeowners’ policies.
By licensing the product through Milliman Appleseed, insurers can easily adopt Swiss Re’s simplified product offering, avoiding extensive product development, reducing state-by-state regulatory costs and uncertainty, and accelerating their growth into more states.
“Offering Swiss Re’s simplified flood offering through Appleseed changes the economics of flood insurance, a critical step to close the protection gap in areas outside of currently mapped floodplains, which are the least insured today,” says Dave Evans, a consulting actuary with Milliman. “Insurers can now access a sophisticated, low-risk flood product without incurring large upfront costs.”
“This is an important step to further opening the door to the private flood insurance market in the U.S.,” says Matt Junge, Head Property Solutions, US & Canada, at Swiss Re. “This addition to our existing flood capabilities makes it easier and faster for clients to enter this space and protect more communities across the country from the financial impacts of flooding.”