Munich Re has partnered with not-for-profit advisory organisation the American Association of Insurance Services (AAIS) to focus on improving flood insurance protection for US homeowners.
The flood insurance protection gap in the US continues to expand alongside the heightened risk of flood, the partnership noted, particularly for homeowners outside major flood zones.
Currently, the National Flood Insurance Program (NFIP) dominates the US market, but Munich Re and AAIS believe there is an opportunity for private insurance and reinsurance companies to expand their presence.
“Historically, homeowners in low to moderate risk areas have gone unprotected against flood,” said Serena Garrahan, Flood Product Manager at Munich Reinsurance America.
“We are thrilled to work with AAIS on the development of inland flood coverage that can offer insurance carriers and their customers a way to help protect against the losses associated with this risk,” she added.
John Kadous, Vice President of Personal Lines & Auto and Head of Product Strategy at AAIS, also commented: “Munich Re brings tremendous flood insight and pricing data to our product development efforts.”
“Addressing flood coverage for homeowners is a key first step in a larger flood strategy for AAIS.”
Established in 1936, AAIS serves the US property & casualty re/insurance industry under the governance of its member insurance carriers
It provides advisory solutions such as policy forms, rating information and data management capabilities for commercial lines, inland marine, farm & agriculture and personal lines insurers, and serves as the administrator of the industry’s regulatory blockchain, openIDL.