Neptune Flood Releases Analysis of Hurricanes Helene and Milton

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Nov 13, 2024, 11:05 ET

Largest Private Flood Insurance Company Shares Insights on the Public and Private Flood Market

ST. PETERSBURG, Fla., Nov. 13, 2024 /PRNewswire/ -- Neptune Flood has released an analysis of the aftermath of Hurricanes Helene and Milton, highlighting the challenges and systemic issues in the U.S. flood insurance market. This is the first issue created by the Neptune Flood Research Group, a newly formed team of analysts that will provide periodic commentary and insights on the flood insurance market. This issue covers:

Neptune Flood's Analysis on Hurricane Helene & Milton's Aftermath

Impact of Hurricanes Helene and Milton: Hurricanes Helene and Milton have caused significant damage, with Helene resulting in over 55,000 NFIP claims and projected losses between $6-7 billion, while Milton has resulted in over 18,000 claims with projected losses of $1.5-2.5 billion.
NFIP's Financial Strain: The NFIP is expected to face total losses between $8.2-10.5 billion for 2024, leading to a loss ratio above 200% before accounting for loss adjustment expense.
Private Market Losses: The private flood insurance market in Florida has also experienced considerable losses, with projections indicating total losses of over $500 million from Hurricanes Helene and Milton.
Shift Towards Private Insurance: The limitations of the NFIP have driven policyholders to seek more comprehensive private insurance options, which offer higher coverage limits and more flexibility.
Pinellas County Case Study: Pinellas County, Florida, has seen over 22,000 NFIP claims from Helene alone, with an additional 2,000 NFIP claims from Milton. The county saw over 40,000 buildings damaged in the storms, highlighting both the significant flood damage and extensive uninsured risk in the area.
Challenges with Risk Rating 2.0: Since the implementation of Risk Rating 2.0, the NFIP has seen a decline in its insured base, with many homeowners opting for private flood insurance due to rising premiums and coverage limitations.
Outdated Flood Maps: The reliance on outdated flood maps remains a significant challenge, with many homeowners unaware of their true flood risk.
Building Resilient Communities: Addressing the challenges of the flood insurance market requires collaboration among various stakeholders, increasing public awareness, and ensuring adequate insurance coverage.

Click here to view the complete analysis.

About Neptune Flood
As the largest provider of private flood insurance in the United States, Neptune Flood continues to expand rapidly, offering a competitive alternative to the NFIP. Today, Neptune provides nearly $100 billion in coverage across over 220,000 residential and commercial properties, demonstrating both scale and stability within the flood insurance marketplace.

SOURCE Neptune Flood