Munich Re Announces New U.S. Inland Flood Insurance Product, Providing More Options for Homeowners

PRINCETON, N.J.–([1])–Munich Reinsurance America, Inc. announces a new personal lines inland
flood insurance product designed to provide more options for homeowners
in low-to-moderate-hazard flood zones.

According to the National Flood Insurance Program (NFIP), flood is the
most common natural disaster in the United States and all 50 states have
experienced floods or flash floods over the past five years. However,
many homeowners who live outside of Atlantic and Gulf coast areas do not
have insurance coverage for flood.

Most homeowners insurance policies do not cover flood. Instead, flood
coverage must be purchased separately through the NFIP. In
low-to-moderate-hazard flood zones, the reported NFIP purchase rate is
estimated at only around 1%, yet NFIP data shows those areas account for
over 20% of NFIP claims and one-third of Federal Disaster Assistance for
flooding.

“Our innovation around flood coverage is designed to address an
underserved market, particularly given the increased risk of flooding
due to more intense annual precipitation over the last decades,” said
Steve Levy, President, Munich Re America’s Reinsurance Division. ”This
product is an attractive alternative for non-coastal homeowners looking
for competitively priced, lower-limit coverage to protect their homes
and personal property. It is a first step into the private flood
insurance marketplace, and one we are taking cautiously and
deliberately.”

Munich Re America’s new Inland Flood Coverage Endorsement can be
attached to a consumer’s existing Homeowners insurance policy purchased
through a participating insurance carrier. Discussions with prospective
carriers and state regulatory authorities are currently in progress.

“Average homeowners in a lower flood hazard area seek basic protection
for their home and personal property at a competitive price,” said Tim
Brockett, Munich Re America’s Senior Vice President, Reinsurance
Division Strategic Products. “Our new Inland Flood Coverage Endorsement
is designed to solve that need; it can be offered at lower limits and
tailored to the underlying homeowners policy, thus eliminating the cost
and administrative burden of a separate, stand-alone flood policy.”

An independent research survey of insurance agents conducted for Munich
Re in the US found that 78% of agents surveyed said this new Inland
Flood Coverage Endorsement fills an unmet need that currently exists in
the marketplace, and 81% said the coverage would appeal to consumers.

Full implementation services for insurance carriers that choose to offer
the Inland Flood Coverage Endorsement will be provided by Hartford Steam
Boiler Inspection and Insurance Company, an affiliate of Munich
Reinsurance America, Inc.

Flood claims management services will be available through Specialty
Insurance Services Corporation (SIS). SIS is an affiliate of American
Modern Insurance Group® and Munich Reinsurance America, Inc.

Please click
here for more information about flood
[2].

Munich Re stands for exceptional solution-based expertise,
consistent risk management, financial stability and client proximity.
This is how Munich Re creates value for clients, shareholders and staff.
In the financial year 2014, the Group – which combines primary insurance
and reinsurance under one roof – achieved a profit of €3.2bn on premium
income of over €48bn. It operates in all lines of insurance, with over
43,000 employees throughout the world. With premium income of around
€27bn from reinsurance alone, it is one of the world’s leading
reinsurers. Especially when clients require solutions for complex risks,
Munich Re is a much sought-after risk carrier. Its primary insurance
operations are concentrated mainly in the ERGO Insurance Group, one of
the leading insurance groups in Germany and Europe. ERGO is represented
in over 30 countries worldwide and offers a comprehensive range of
insurances, provision products and services. In 2014, ERGO posted
premium income of €18bn. In international healthcare business, Munich Re
pools its insurance and reinsurance operations, as well as related
services, under the Munich Health brand. Munich Re’s global investments
amounting to €227bn are managed by MEAG, which also makes its competence
available to private and institutional investors outside the Group.

Disclaimer

Product and services provided by Munich Reinsurance America, Inc. and
its affiliates. Any descriptions of coverage contained in this press
release are meant to be general in nature and do not include nor are
intended to include all of the actual terms, benefits and limitations
found in an insurance policy. The insurance policy and not this press
release will form the contract between the insured and insurance
company, and governs in all cases. This press release is for information
purposes only and is not intended to be legal, underwriting, financial
or any other type of professional advice and the recipient should
consult with its own advisors with respect to the information contained
herein and its applicability to the recipient’s particular circumstances.

References

  1. ^ (www.businesswire.com)
  2. ^ click here for more information about flood (cts.businesswire.com)
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