Article in a snapshot:

• Where does private flood fit in the US market?
• How does pricing reflect the real risk?
• Why write flood digitally?
• What does partnering with Brit look like for a Managing General Agent (MGA)?
• How is climate change shaping the flood market?
• What comes next for Brit Flood?

Flood risk in the USA, we’re closing the gap

Brit has experience in writing for flood that spans decades. Our traditional business handles the larger, more nuanced and complex risks that need a human touch. Alongside it, our digital platform is now live with residential primary and excess cover, and in Q1 2027 we plan to launch primary and excess commercial flood digitally too. 

In a recent conversation with Insure TV, Joanne Allen, our Class Underwriter, and Jack Hennebry, our Senior Underwriter, explained where private flood fits in the US market, why most of our flood business now runs through an API, and what brokers and MGAs can expect from us in 2027.

Where does private flood fit in the US market?

For most of Brit's decades in US flood, the National Flood Insurance Program (NFIP) dominated. The government set it up in 1968, and primary flood cover is what federally backed mortgages require. For years, lenders would only accept NFIP paper. 

Catastrophic events such as Hurricane Katrina changed the picture. The losses left the NFIP billions of dollars in debt. The Biggert-Waters Act of 2012 then opened the door to private insurers, requiring lenders to accept private policies as long as the cover was at least as broad as the NFIP.

Private carriers came in slowly, because the NFIP is what the market knows. Joanne is clear about the role Brit plays; “Really, the role of the private insurers is to be able to offer an alternative.”

The wider issue is the protection gap. Joanne points this out; “only around 4% of homeowners with low-to-moderate exposure buy flood insurance, rising to about 30% among those with moderate-to-high exposure.” That is before you look at commercial property. With flood risk present right across North America, the room for growth is significant.

How does pricing reflect the real risk?

The NFIP’s Risk Rating 2.0 pricing reform reshaped premiums, and Jack notes the effect cut both ways; “Some people’s premiums go through the roof, and some people are getting a bargain.” That imbalance is part of the reason so much US flood business has found its way to London. 

Working in the London market means Brit can price flood cover to reflect the real risk. Joanne covers our approach; “We look to actually geocode locations on a rooftop at minimum, and to actually charge people for their exposure, rather than any other noise around the edges meaning that people are subsidised or not subsidised. The aim is to be fair.” For brokers, that means a private quote is worth considering against an NFIP renewal.

Why write flood digitally?

US flood distribution can run from the policyholder to a retailer, then a wholesaler, then to Brit. Every link adds time. Traditional underwriting earns that time on large, complex risks that need a human touch. It makes far less sense for a homebuyer who needs evidence of cover to close on a mortgage. 

Brit’s digital platform returns a quote in under two seconds. It is live today for residential primary and excess, and it lets clients buy flood cover online quickly.

What does partnering with Brit look like for a Managing General Agent (MGA)?

Using an API, Brit shares data with our MGA partners every month, showing them what our side of the data says so they can optimise their own performance while we optimise ours. 

The data fed via our API makes this possible in real time. In a traditional arrangement, a bordereau arrives at month end, sometimes with 30 days to submit, by which point a problem may have escalated. Jack describes the difference; “Anything we do put in, we can pretty much put in overnight.” Our dedicated tech support is on hand for questions from US partners and UK brokers alike.

Around 90% of our digital business is high-volume, low-limit risk that flows straight through the API. We are not restricted geographically. For the remaining 10%, we would rather adapt than lose the risk, using bespoke wordings, varied limits or subscription-type agreements. If something truly does not fit the API, we write it traditionally.

How is climate change shaping the flood market?

Rising sea temperatures, more extreme hurricanes and heavier rainfall are firmly on our radar, and our research and development team tracks them closely. Joanne is also realistic about the pace of change; “the US will not be underwater tomorrow, so the job is to keep reading the data and adjust as the impacts emerge.” 

There is currently short-term commercial pressure in the market. After a couple of benign catastrophe seasons, rates are softening. Jack is clear about Brit’s response; “We’re in it for the long-term. We try to price adequately, sensibly and do the right thing. For brokers, that discipline means capacity you can rely on when conditions turn.

What comes next for Brit Flood

Brit plan to launch primary and excess commercial flood on our digital platform in Q1 2027. That completes our full suite: residential and commercial, digital and traditional so that we can place flood risk right across the board. 
 
Joanne sums up the ambition: “We really do feel like we've got a solution to suit everybody, so we'd love to talk to you. Do give us a call.” If your US clients are sitting in the protection gap, or paying more than their risk warrants, now is the time to start that conversation. 
 
To find out how our flood capacity can support your US clients, explore our delegated authority flood offering or speak to the flood team today.

Brit team members featured in this article