Inga Beale, Lloyd’s CEO, said:
“The devastation caused by recent storms is a reminder of the terrible costs of natural catastrophes. It also highlights the chronic issue of communities without insurance and without the means to rebuild their lives. We urgently need reform to the flood insurance market in the US to make these communities more resilient. All parties – governments, the insurance industry and policyholders – have a responsibility to do this.
“We know that the climate is changing and with it, traditional weather patterns. We need to find ways to pay these rising costs. That’s why Lloyd’s is actively pursuing the further development of the private flood insurance market in the US, which will help to promote flood insurance and encourage more people to take up cover.
“We need clear authorisation from Congress for the private flood insurance market to allow the market to continue to grow and move more risk into the private sector. This will provide consumers with more choice and better coverage options in some cases.”
The US National Flood Insurance Programme (NFIP) was created in 1968 to provide affordable flood insurance, but a series of major losses and inadequate take-up have left it with a funding shortfall of more than US$24 billion.