Neptune Flood, a US-based flood insurance provider owned by Neptune Insurance Holdings, Inc., has responded to the FEMA Review Council’s report to the President concerning the future direction of the National Flood Insurance Program (NFIP), expressing support for proposals aimed at increasing private sector participation in the flood insurance market.
In its statement, Neptune Flood said it welcomed the Council’s recommendation to broaden the role of private insurers within a more resilient national flood insurance framework.
The company stated that it is prepared to contribute to these efforts by increasing the availability of modern and competitively priced flood insurance products for US property owners.
Neptune Flood noted that more than 15 million flood-exposed properties across the United States currently lack insurance cover. The company said improving flood insurance penetration remains one of the most significant measures available to strengthen the financial resilience of households, local communities and the wider economy.
According to Neptune Flood, a combined approach involving both the NFIP and private insurers could help expand the insured market while improving protection against flood-related losses.
The company stated that private flood insurance is already helping to widen access to cover and reduce costs for policyholders. Neptune Flood said its internal findings show that almost half of NFIP customers could potentially lower their premiums by moving to private insurance, while close to two-thirds of new policyholders could obtain cheaper cover through the private market.
The company also highlighted that private flood insurance providers are able to offer features not currently available through the NFIP, including increased coverage limits and optional reimbursement for temporary accommodation expenses following flood damage.
Neptune Flood further stated that the private flood insurance market has developed sufficient scale to support a substantial share of US property owners. According to the company, around 95% of residential and commercial properties currently insured under the NFIP would also meet eligibility requirements for private flood cover. At the same time, Neptune Flood said the NFIP continues to play a necessary role in ensuring insurance remains available for properties that fall outside private market underwriting criteria.
“Expanding the role of the private flood insurance market is a critical step toward a more sustainable national flood insurance system,” commented Trevor Burgess, Chairman and CEO of Neptune Flood. “Private providers bring capital, advanced risk modeling, and improved consumer options to the market. At the same time, the NFIP remains an important safety net for properties that cannot yet be insured privately. Together, the two can create a stronger and more resilient flood insurance framework for the country.”
Neptune Flood said it currently provides cover to more than 300,000 policyholders nationwide through its Triton® underwriting platform, which assesses flood risk and distributes policies through a panel of 42 insurance and reinsurance companies globally. The company stated that these carriers provide underwriting capacity and assume the underlying insurance risk, supporting the growth of private capital within the US flood insurance sector.
The company also said its products are distributed through a nationwide network of independent insurance agents, with more than 45,000 insurance professionals using the Neptune platform to arrange private flood insurance cover for customers. Neptune Flood stated that the continued growth of this network reflects increasing confidence within the insurance market in the long-term viability of private flood insurance solutions.
“The FEMA Review Council’s recommendations highlight how much the private flood insurance market has matured and why it can play a larger role going forward,” added Matt Duffy, President of Neptune Flood.
“Over the past decade, we have seen a growing ecosystem develop around private flood coverage. Today, more than 45,000 insurance professionals nationwide use the Neptune platform, connecting policyholders with capacity from over 42 global insurance and reinsurance companies, and serving more than 300,000 policyholders across the United States. We believe that level of participation from agents, insurers, reinsurers, and consumers reflects the growing confidence in private flood insurance as a sustainable and scalable complement to the NFIP.”
Neptune Flood said the FEMA Review Council’s report creates an opportunity for closer cooperation between public and private sector stakeholders to improve flood insurance availability and strengthen national resilience to flood risk.
The company added that integrating the stability of the NFIP with the technology, capital and underwriting capabilities of the private market could support the development of a more sustainable flood insurance system while increasing the number of protected properties across the United States.
The statement follows the FEMA Review Council’s recommendation that reforms to the National Flood Insurance Program (NFIP), including a larger role for private insurers, are needed to support a more sustainable and resilient US flood insurance market.
