(Image credit: FEMA.)
Verisk (Jersey City, N.J.), a provider of data analytics solutions to the insurance industry, has launched a personal lines flood insurance program through its ISO business designed to make flood coverage widely available to homeowners anywhere in the contiguous United States.
Verisk says the ISO personal lines flood program enables insurers to enter the private flood insurance market by offering broad and flexible coverage options in a template similar to the standard homeowners’ policy already familiar to most consumers.
“The floods of recent years have highlighted the inadequacy or complete lack of coverage for many Americans, including those who didn’t think they were at risk for flooding,” comments Neil Spector, president, ISO.
“This program presents a new opportunity for insurers to grow their homeowners book by providing robust flood risk protection to an underserved segment,” adds Marc Treacy, managing director, flood, ISO. “Innovative insurers can be at the forefront of market disruption with a comprehensive property risk solution that provides needed insurance to new customers and fresh coverage options for existing customers.”
Verisk reports that the ISO personal lines flood insurance program enables broader and more flexible coverage than the National Flood Insurance Program (NFIP), with wording generally similar to the standard homeowners’ policy most consumers know. The ISO program lets insurers offer coverages and deductibles with options to include additional living expenses; other structures on the property such as detached garages, fences, and pools; and damage to personal property in a belowground area.
The new ISO personal lines flood program features a rating manual that Treacy characterizes as taking a fresh look at traditional flood territories. “Through a combination of models developed by AIR Worldwide and extensive analysis of ISO and NFIP data, ISO has designed a comprehensive and actuarially sound rating structure encompassing every address in the lower 48 states,” he asserts.
Verisk relates that ISO began the state-by-state filing process for its new personal lines flood program in December 2017 and says it will continue the filing throughout 2018. The ISO commercial lines flood program was launched in the summer of 2017.
Comprehensive Suite of Solutions to Support Flood Insurance Programs
Through its ISO, AIR Worldwide, and Xactware businesses, Verisk offers what it characterizes as a comprehensive suite of solutions to support flood insurance programs, including policy programs for personal and commercial lines, individual risk assessment, portfolio analysis, and claims estimation.