The National Flood Insurance Program is set to expire September, 30, 2017. As such, there has been widespread interest from policymakers, insurers and reinsurers for private sector participation to support the future viability of the NFIP. Private insurance companies are eager to garner a share of the $3.4 billion in premium that the NFIP wrote in 2015. However, they are only interested in writing risks at actuarially sound rates.
Congress created the National Flood Insurance Program in 1968 in response to the rising cost of taxpayer funded disaster relief for flood victims, and also to address the increasing amount of damage caused by flooding. The aim of the program was to reduce the impact of flooding by providing affordable insurance to property owners and by encouraging communities to adopt and enforce flood plan management regulations.
The insurance industry’s programs business continues to deliver value through product innovation. Today, insurance programs is a $40-$50 billion premium market, driven by pecuniary motivation. Insurance carriers are partnering with program administrators (PAs) and managing general agents (MGAs) to provide capacity for capturing new business in non-commodity classes of business. The outlook for sustainable growth through 2017 is positive, as carriers seek profitability in specialty line sectors of the marketplace.
Within the expansive global entertainment industry, film production is one of the most prominent sectors reaching into every corner of the world. Producers filming outside of the U.S. can face a jurisdictional risk, exposing production companies to the potential for significant loss from political risk and or political violence events. The increasing terror activity and political turmoil around the world are raising awareness of the need for comprehensive insurance protection in response to these emerging risks.
Individual active shooter incidents, including acts of terror, have soared in frequency in the United States over recent years challenging businesses and institutions to face unprecedented exposure to an emerging risk. In addition to adequate insurance coverage, timely and efficient response can be a paramount mitigating factor, enabling the targeted entity to withstand attack repercussions and facilitate operational recovery. An insured’s access to crisis management services and resources can be critical.