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Industry panel: private flood market supplements NFIP; agents play key role in outreach and sales
Summary
Industry representatives told the Jan. 30 forum that a growing private flood market complements the NFIP, offers higher limits and sometimes different coverage (for example, basements), but consumer uptake remains low and agents are central to education and sales.
Industry speakers and independent agents told the Insurance and Real Estate Committee that the private flood market has expanded in Connecticut and nationally but that many property owners still do not buy coverage.
"Despite my title, I've been involved with flood insurance for about 4 decades at this point," said Don Griffin, reflecting on the private sector's role in selling and administering flood coverage. Griffin described the private sector's participation in the NFIP "write your own" program and said private companies also write excess flood coverage above NFIP limits.
Kim Bacchio of The Hartford described how private carriers participate in the NFIP write‑your‑own arrangement and also sell private flood products. She said private carriers have no Treasury exposure for NFIP claims (funds are federal) and that carriers differentiate on service, technology and claims handling. Bacchio noted private options can sometimes include basement coverage and higher limits for coastal or high-value properties.
Independent agents stressed their local advising role. Travis Waddie of the Independent Insurance Agents and Brokers of Connecticut (Big I) and Jason Guerrera of USI Insurance Services said agents sit down with clients to "tally your total cost of risk" and decide whether to buy NFIP, private or layered coverage. Agents said average NFIP costs for a $250,000 residential limit outside high-risk zones are commonly in the low hundreds to several hundred dollars a year; agents also noted NFIP annual rate adjustments have statutory constraints (panelists cited an 18% annual cap in many cases) but that Risk Rating 2.0 and actuarial changes can shift premiums over a multi-year "glide path." (Jason Guerrera; Diane Iffkovic).
Speakers agreed availability is not the principal problem; consumer purchase decisions and affordability are. Several agents recommended routine disclosure or a required agent‑customer acknowledgement about flood insurance, while cautioning that mandatory forms can carry unintended consequences for small local businesses and agents.
Ending: Panelists recommended more agent-driven outreach, insurer notices on policy renewals, wider use of elevation certificates for underwriting and public education to increase uptake of available coverage options.
