The U.S. private flood insurance market experienced a surge from 2016-2022, with carriers experiencing a 24% increase in direct written premiums, according to the Insurance Information Institute (Triple-I). Notably, private carriers now play a more substantial role, accounting for slightly more than 32% of the overall market. The above slideshow reviews the largest U.S. private flood carriers based on 2022 market share, according to data from AM Best. In 2016, just 18 private insurers collectively wrote 12.6% of the market and were responsible for less than $1 billion in direct written premiums. This landscape underwent a transformative shift over the subsequent years, showcasing the dynamic evolution within the sector. The growth in private flood insurance coincides with the National Flood Insurance Program (NFIP) introducing Risk Rating 2.0, which aims to align flood insurance rates more accurately with the associated property risks. Anticipated to impact over 60% of NFIP policyholders with rate hikes, this development has prompted legal actions several states and municipalities seeking to impede the further implementation of Risk Rating 2.0 and its accompanying rate increases. While the NFIP's new pricing guidelines are expected to elevate rates for some, Triple-I noted there are avenues within the NFIP to help policyholders secure lower rates. Community discounts for flood mitigation efforts emerge as a prominent option, fostering community resilience. However, recent findings from the Government Accountability Office (GAO) reveal that these community discounts significantly contribute to the NFIP's mounting debt. As the program falls short of collecting sufficient premiums to cover its claims, the community discounts are effectively transferring the burden of prior losses onto current and future policyholders, according to GAO. Despite Congress mandating a 5% annual increase, NFIP rates experienced a 9% decline from 2014 to 2019, as according to research from Poulton Associates. Related: |

• An abridged history of the National Flood Insurance Program
• 10 U.S. cities with the highest flood risk
• U.S. businesses drastically misjudging flood risks, Chubb reports