We’ve seen the private market take huge rate increases on new policies, lately. For example, one quote done back in July was $1731.68. When we updated it this month it went up to $7396.56. Another went from $661 to over $3000. We went to other private market insurers and found similar results with some, but not all, insurers, but when competition leaves the marketplace the ones still in the market don’t have the competitive pressure to keep pricing low. They’ll likely go up, too.
That, and some discussion with flood insurance providers, leads us to believe that the private market is pulling back from the marketplace. This has developed quickly in the past few weeks. We’ll see if renewals receive big increases.
This is not having an effect on National Flood Insurance Program (NFIP) policies and pricing other than making them a more attractive option.
There’s a lot to discuss with this about why it’s happening and there’s a some questions still remaining, but that would make this a very long post.