Palomar Holdings Inc. has appointed Neptune Flood as its exclusive managing general agent (MGA) for flood insurance.
Under the agreement, Palomar will continue to participate in the flood insurance market while adopting Neptune’s proprietary technology platform. The system uses artificial intelligence, data science and machine learning to assist in underwriting and policy management, the report said.
According to a Best Wire report, the partnership is designed to expand access to private flood insurance nationwide and serve as an alternative to the National Flood Insurance Program (NFIP), which has historically been the primary source of flood coverage in the US.
Palomar president Jon Christianson said the company is continuing to grow its presence in the flood insurance segment and selected Neptune based on its technology infrastructure and underwriting expertise. Palomar’s distribution partners will gain access to Neptune’s digital platform, which is intended to simplify the quoting and binding process and reduce turnaround times for agents and policyholders.
Neptune Flood, an insurtech MGA founded in 2016, is currently the largest private flood insurance provider in the US, with nearly 250,000 policies in force. The company distributes policies through both independent agents and digital channels and offers coverage in all 50 states and Washington DC.
In February 2024, Neptune expanded its product suite to include up to $4 million in excess flood insurance for residential, commercial and condominium properties that already have NFIP coverage. The product is designed to supplement the NFIP’s maximum coverage limits to four-family residential structures and $500,000 for commercial or larger non-condominium properties.
Neptune Flood president and CEO Trevor Burgess said the excess product reflects growing demand for higher flood limits, especially in coastal and flood-prone areas where NFIP limits may not fully cover potential losses. He added that the company’s technology allows it to provide real-time underwriting decisions and customizable coverage options for a range of property types.
The partnership comes amid a shifting flood insurance landscape. In recent years, rising sea levels, increased flooding frequency, and higher property values have placed pressure on the NFIP and driven interest in private alternatives. Changes under FEMA’s Risk Rating 2.0, introduced to better align premiums with actual risk, have also resulted in rate increases for many NFIP policyholders, further opening space for private insurers to grow.
Palomar’s flood insurance business is part of a broader portfolio that includes earthquake, hurricane, and specialty property coverage. The company has focused on leveraging technology and partnerships to expand distribution and improve operational efficiency, according to the report.
