In this AM Best interview, Milliman’s John Rollins discusses the evolution of the private flood insurance market and the challenges to writing private flood insurance. He says that historically the federal government has supplied most of the flood insurance in the United States. But with the private flood insurance market opening up, there is a significant market opportunity for insurers. Roughly 40 million people in the United States need flood insurance, but only about 5 million to 6 million actually buy it. Rollins also talks about the technology involved in writing private flood insurance and how this has changed over the years.
To learn more about the challenges U.S. insurers may face in the private flood insurance market, read John’s article “Wading into the private insurance market.”