In an effort to address the flood protection gap (disparity between economic and insured losses post-event), Hiscox Re and ILS has launched FloodXtra, a new solution for U.S. personal lines flood insurers.
The flood protection gap in the U.S. was highlighted recently by hurricanes Harvey and Irma, a reminder to the global risk transfer industry that dangerous protection gaps exist in both developed and emerging markets.
Deregulation is taking place in the U.S., which could provide the private insurance and reinsurance markets with an opportunity to provide more individuals with adequate and affordable flood protection.
The new solution, FloodXtra, aims to help close the flood protection gap in the U.S., and was developed by Hiscox in collaboration with its U.S. carrier partners.
Bevis Tetlow, Head of North American Underwriting, 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.”
Flooding commonly impacts the U.S. more than any other peril, but below 12% of homeowners in the country have flood insurance. Substantial flooding in parts of the U.S. last year, combined with the impacts of recent hurricanes, underline the need to support the already stressed National Flood Insurance Program (NFIP).
The new solution from Hiscox Re and ILS provides competitive pricing and broader than standard insurance protection, flexible limit and deductible options, as well as offering a fast and efficient underwriting portal that provides instant location level pricing, explains Hiscox.
Furthermore, FloodXtra delivers straightforward policy wording, a quality claims experience for the insured, is easy to place and offers assistance with form development, and a quota share reinsurance with up to 100% cession to Hiscox Re, explains the firm.