FloodFlash expands nationwide flood coverage with reinsurer backing

FloodFlash expands nationwide flood coverage with reinsurer backing | Insurance Business New Zealand

Reinsurance

New programs introduced amid rising hurricane forecasts

Reinsurance

By
Mav Rodriguez

In response to predictions of an active hurricane season, FloodFlash has announced its nationwide expansion across the mainland United States – with some significant reinsurer backing.

The company is known for offering flood coverage beyond the limits of the National Flood Insurance Program (NFIP), and now extends its services to industries such as real estate, sports and entertainment, manufacturing, energy, and healthcare, where private markets often fail to provide quotes.

Initially launched in states including Florida, Texas, California, Virginia, and Louisiana, FloodFlash expanded to an additional 10 states in January. Following a binder expansion with Munich Re Specialty – Global Markets, the company now offers quotes nationwide, meeting increased broker demand. States such as North Carolina and Georgia, along with others, now have the same access to FloodFlash services as the East and Gulf coast states.

The expansion comes alongside the introduction of new programs targeting dealer lot businesses, golf and country club clients, and parametric insurance solutions for business interruption. These initiatives aim to support US brokers and their clients ahead of the predicted active hurricane season.

Experts at Munich Re forecast above-average hurricane activity in 2024, anticipating around 23 named cyclones in the tropical North Atlantic, with 11 expected to develop into hurricanes and five becoming severe hurricanes with wind speeds exceeding 110mph.

“This significant increase in expected activity is a cause for great concern. The combination of hard market pressures and a relatively benign 2023 hurricane season has seen many coastal clients retaining record-high levels of storm and surge risk. Carrying forward those retention levels will leave many insureds watching on nervously as we move through hurricane season,” FloodFlash’s US commercial director Rich Coyle said.

“For businesses lacking the necessary coverage limits, now is the best time to develop physical and financial resilience to hurricanes.”

The predictions are nearly double the long-term average from 1950 to 2023, which saw an average of 12 named storms, 6.4 hurricanes, and 2.8 severe hurricanes. The anticipated 2024 activity level comes after a relatively quiet period, potentially matching the number of hurricanes seen in both 2022 and 2023 combined.

“My message to risk managers is simple: ‘there is still time.’ If your clients don’t have the flood limits they need after Q2 renewals, coverage is still available,” FloodFlash CEO Adam Rimmer said.