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The federal government shutdown has suspended the National Flood Insurance Program, but St. Petersburg–based Neptune Insurance is seizing the moment, The Wall Street Journal writes.
The private flood insurer went public Oct. 1—the same day NFIP halted new policies—and now serves 260,000 customers.
CEO Trevor Burgess, a former Morgan Stanley banker, says Neptune’s algorithmic pricing model makes flood risk “an investible asset.” Global partners such as AXA XL and Fortegra back its underwriting. Flooding remains the nation’s costliest disaster, yet only 5 million U.S. homes carry insurance, mostly through NFIP.
As NFIP rates rise and remain below market in many areas, Neptune’s custom coverage options—like basement protection and temporary housing—could attract new buyers.
Still, analysts question how much private insurers will embrace the volatile flood market. Burgess is betting improved data and rising premiums will make flood insurance finally profitable for private capital.
