Yesterday, a big change in the way risk is priced under the U.S. National Flood Insurance Program (NFIP) was announced, with a shift to fully risk-based pricing of flood insurance potentially set to be a driver of more flood risk into private reinsurance and risk markets.
One piece of the legacy puzzle of U.S. flood insurance risk is that the NFIP has dominated the provision of it, resulting in a one-size-fits-all approach to pricing, that means two homes may pay the same rates despite having vastly different levels of exposure to major flood events.
Now,