That means that, eventually, only a very small number of houses are really almost impossible to insure and really need the federal government’s backing. We know that because 97 percent of the time someone types in an address, they will get a quote from Neptune. So we believe that a very large portion of the National Flood Insurance Program will eventually be able to go to the private market. Now we can do four houses on that street, but we make sure that each reinsurer only gets one house. What that means is, let’s say we could only insure one house on a street if we had one reinsurer. Neptune has expanded the number of underlying reinsurers that we work with to four and soon to be five. Today, Neptune has 88,000 clients across the country, and we make sure that we’re not overconcentrated in any one particular area, and it’s our technology that enables us to keep selling and growing while preventing that sort of risk.ĭoes that mean there is a ceiling to how many people will be able to migrate into the private flood market? We make sure that we don’t insure every house on the same block and we spread out those risks across the state and country. Part of the patent application underlying Neptune’s systems has to do with that problem exactly. I’ve heard that private insurance companies may not want to absorb too many people leaving the National Flood Insurance Program out of fear of clustering too many policies together. It’s an enabling of the American consumer that Neptune has brought to the market, and giving the power to consumers to check their options and see if they can get a better price. That’s a great opportunity to go to, type in your address and see if you can save money. How should somebody start researching if they should switch to private?įour million American households over the next year are going to get a renewal notice from the National Flood Insurance Program that shows a price increase. We’re looking at the individual risk of your particular house, which may mean that your price could be materially lower than your neighbor’s price. For Neptune the flood zone is an output rather than an input. The federal government is moving in that direction, but not completely. Neptune uses very sophisticated computer systems and algorithms to determine the individual risk of each home. They all have a high risk of flooding and should buy flood insurance. That means those 5 million households misunderstand their risk of flooding. It really starts with, ‘Am I at risk of flooding?’ There are 5 million households in the state of Florida who do not have flood insurance. So when you get your insurance packet, it doesn’t say, ‘This is from FEMA and the National Flood Insurance Program.’ It has the name of one of these big insurance agencies even though the underlying insurance is really coming from the federal government.īut the confusion doesn’t stop there. They sell through agents, and those agents all have private-sounding names. People are confused about where their flood insurance comes from because the National Flood Insurance Program does not sell directly to consumers. Your company conducted a survey last year and found that a lot of people think they have private flood insurance, when it’s likely they actually get it through the federal government. The interview has been edited for length and clarity. He spoke to the Tampa Bay Times about the coming shifts in flood insurance and common misconceptions. Petersburg-based C1 Bank, where he had been the first openly gay CEO of a publicly listed bank. Trevor Burgess īurgess took the reins at Neptune in 2019 after selling St.
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