Magazine date:
May 2017  |
The National Flood Insurance Program (NFIP) which is a state-owned insurer, is predominantly covering the 5 billion USD in insured damage caused by floods.
In order to offset this deficit, Swiss Re has come up with three alternatives. First, the individuals exposed to risks are required to be fully aware of the threat surrounding them and underwrite flood policies. Secondly, insurers are, for their part, required to provide simpler and more accessible policies.
Finally, Swiss Re recommends the establishment of public-private partnership in order to increase the capacity and propose insurance products at more affordable prices.