Neptune Insurance Holdings CEO Trevor Burgess recently joined a Wall Street TV program to express an ebullient message: “It’s not every day that you can go public and have your main competitor closed for business.”
Trevor Burgess was referring to the National Flood Insurance Program, which is operated by the Federal Emergency Management Agency and provides more than 90 percent of flood coverage in the United States. The program is neither writing nor renewing policies since it lapsed on Sept. 30, and its reactivation is currently caught up in Congress’ infighting over the government shutdown.
The NFIP’s lapse could represent a unique opportunity for private insurers to expand in a market that’s long been dominated by the taxpayer-subsidized federal program — an expansion that lawmakers and federal officials have encouraged.
Flood insurance, which is sold separately from homeowners’ insurance, is considered increasingly crucial as climate change raises sea levels and intensifies rainstorms. Yet fewer than 5 percent of U.S. households have coverage, which has left many uninsured households in financial ruin after their property is flooded.
