The start of any year typically brings expert predictions around the trends and topics that might dominate the year. The 2024 industry predictions are wide-ranging, from the role AI will continue to play in insurance, to customer-centricity and climate change. We asked a few of our FloodFlash experts their predictions for the year. Keep reading to find out what they said.
From the US team
Less choice for customers
Chris points to rising prices in his prediction: “in the wake of the erratic storms of 2023 across the country, the market will continue to harden limiting options in the private sector.” Kristen agrees, “2024 will likely see traditional insurers cut back on capacity further. This will lead to continued growth and a big push for private flood and other innovative solutions”
Ben reflected on the impact it will have on business and public entities that rely on flood coverage: “As the capacity challenges worsen, fewer insurers will be expected to take on more risks which often means less choice for customers. We can expect higher deductibles, exclusions, and lower limits offered throughout the year.”
The parametric outlook
One of the alternative coverage options emerging is parametric insurance. The team are steadfast in their belief that parametric insurance is poised to solve more client issues in the coming year. Ben: “as more brokers and clients opt for parametric placement, the rest of the market will see evidence of the superior claims experience it provides. Some of the brokers we work with already have 12 months experience placing FloodFlash parametric insurance with clients. They will have an edge over their competition.”
Kristen sees parametric as an important addition to the product landscape, supplementing other covers. As she notes, “We have just started scratching the surface of the E&S market and working with our brokerage partners. The size of the opportunity that brokers have to support their clients and increase commission with new products will continue to reveal itself.” Chris agreed, noting that: “parametric will continue to excel in areas non-traditional cannot insure (inland marine, dealer lots, agriculture, and other uniquely difficult flood situations).”
Kristen closed with a comment on the changing attitudes towards alternative coverage. She said: “as our second year in the market unfolds, the novelty and newness will be replaced with greater understanding on exactly how parametric can better solve the needs for their clients. I’m really excited and can already see this shift happening.”
From the UK team
One of the hot topics was the continued growth of parametric insurance. Ciana says: ‘As climate change gets worse, businesses will require more creative solutions to safeguard their assets. Heavy rain and widespread flooding in 2023 may force many traditional insurers to step away from the riskiest locations, and parametric insurance is one of the creative solutions that can fill this gap.’
A better understanding of flood risk
The team also predicted an improved understanding around flood risk. With storms hitting much of the UK over the last few months, many businesses have felt the impacts of flooding. As Thomas comments: ‘With each storm the UK faces, businesses will become more and more aware of the need for comprehensive flood cover.’
Continued supportThe team also had an optimistic view of what the next year looks like for FloodFlash. Joel said: ‘Brokers know the high standard they can expect from our teams. I’m confident more brokers and businesses will love our product.’
We’ve got plenty in the pipeline to continue to improve how we support brokers and clients. Stay tuned to be the first to find out.
Over to you
What are your predictions for this year? Are you seeing more customers with reduced cover, high excesses, or outright exclusions at renewal after the recent storms? Are you seeking alternative sources of flood coverage ahead of SCS and hurricane season? Brokers using alternative means of transferring flood risk will be the best equipped to support and protect their clients.
Get in touch, and we can support you through the process.