By John Novaria, Amplify’s managing director
The hurricanes of this year have served as a reminder of the value of flood insurance and the fact that too few people have it.
Even though only 1 in 6 households in the US has flood insurance, 90% of all-natural disasters there involve floods.
More people are relocating to places at risk of flooding.
This increased residential and commercial development not only puts more people in danger, but it also decreases the amount of land that can be used to soak up surplus water.
More homes and businesses will be flooded, their contents will be damaged or destroyed, and there will be more submerged automobiles.
However, this is altering as the public and private sectors collaborate to strengthen communities and enhance consumer behavior.
As it emerges as a viable complement to the National Flood Insurance Program, the private sector is steadily decreasing the flood protection gap.
As modeling advances make this risk more insurable, private companies are seeing the market opportunity for flood insurance and entering it.
According to Swiss Re, insurers have a $1.1 billion possibility for expansion because of floods.