The American Association of Insurance Services (AAIS) has partnered with Munich Reinsurance America to improve flood insurance for US homeowners.
Historically, homeowners in low to moderate risk areas have gone unprotected against flood, explained Serena Garrahan, flood product manager at Munich Reinsurance America. As the risk of flooding rises in the US, so too does the flood insurance gap, particularly among homeowners outside major flood zones.
The market is dominated by the National Flood Insurance Program (NFIP) and a strong private insurance market is yet to develop, creating an opportunity for insurers to cover flood risk.
The two institutions are developing inland flood coverage that can offer insurance carriers and their customers protection against flood-related losses.
John Kadous, vice president of personal lines and auto and head of product strategy at AAIS, praised Munich Re’s “tremendous flood insight and pricing data”, which it brought to product development efforts.
“Addressing flood coverage for homeowners is a key first step in a larger flood strategy for AAIS,” he added.
American Association of Insurance Services, AAIS, Munich Re, John Kadous, Serena Garrahan