Hiscox launches FloodXtra to help address the flood insurance gap
Hiscox Re and ILS has launched a new US personal lines flood product, available to its insurance carrier partners, which is designed to help address the flood insurance gap...
As the market deregulates, the private insurance market has an opportunity to support more customers with flood cover, and Hiscox has designed FloodXtra in close collaboration with US carrier partners.
Flooding is the most common natural disaster in the US, affecting every region and state, yet less than 12% of American homeowners have a flood insurance policy. Significant flooding in Texas and Louisiana floods during 2016, and more recently during Hurricane Harvey and Hurricane Irma reinforce the scale of the challenge and the need to complement the National Flood Insurance Program. Currently more than 20% of NFIP flood insurance claims come from homes considered to be in low to moderate risk flood areas, where insurance take up is below 2%.
Hiscox has expanded its flood insurance offering with FloodXtra, which provides insurance carrier partners with rates, rules, forms, a ready-to-use underwriting portal and pricing system, and reinsurance. FloodXtra delivers:
• Competitive pricing and broader than standard insurance coverage;
• Flexible limit and deductible options;
• Fast and efficient underwriting portal providing instant location level pricing;
• Straightforward policy wording designed to dovetail standard home insurance products;
• Quality claims experience for the insured – carrier partners own the claims process;
• Easy to place – only two additional questions need to be asked to quote;
• Assistance with form development, rate filing and underwriting platform integration;
• Quota share reinsurance with up to 100% cession to Hiscox Re, client participation preferred.
Bevis Tetlow, Head of North American Underwriting commented: “Recent events have highlighted the inadequacy of flood insurance provisions in the US. The market is deregulating and the good news for consumers is this will give them a greater choice of flood cover. FloodXtra is part of this solution, allowing our carrier partners and ILS investors to leverage our in-house flood analytics and proprietary technology, which in turn boost US homeowners’ resilience to flood.”
For more information go to http://www.hiscoxre.com/floodxtra