Global reinsurance giant Swiss Re has partnered with Milliman, Inc. to deliver a new simplified flood solution via the latter’s open advisory and rating organization, Milliman Appleseed.
Developed by Swiss Re, the new flood offering has been designed to provide flexible coverage for low and moderate flood risks.
According to the pair, go-to-market time is greatly reduced with the use of Milliman Appleseed, which is a new organization licensed to submit loss costs, rating factors and risk scores with state insurance regulators across the U.S.
The offering utilises Swiss Re’s proprietary flood modelling for rating purposes and pairs it with customised policy forms developed by Flood Services Corporation.
The fact the product is licensed through Milliman Appleseed means that insurance carriers can easily adopt Swiss Re’s product offering, which enables them to avoid extensive product development, lowering state-by-state regulatory costs and uncertainty.
Dave Evans, a consulting actuary with Milliman, commented: “Offering Swiss Re’s simplified flood offering through Appleseed changes the economics of flood insurance, a critical step to close the protection gap in areas outside of currently mapped floodplains, which are the least insured today. Insurers can now access a sophisticated, low-risk flood product without incurring large upfront costs.”
Matt Junge, Head Property Solutions, US & Canada, at Swiss Re, said: “This is an important step to further opening the door to the private flood insurance market in the U.S. This addition to our existing flood capabilities makes it easier and faster for clients to enter this space and protect more communities across the country from the financial impacts of flooding.”