In this article, we will be navigating through the global flood insurance industry, its key players, and the 15 best flood insurance companies heading into 2024. If you wish to skip our detailed analysis, you can move directly to the 5 Best Flood Insurance Companies Heading into 2024.
The Global Flood Insurance Industry: An Analysis
According to areport by Allied Market Research, the global flood insurance market was valued at $12 billion in 2022 and is expected to grow to $50 billion by 2032 at a compound annual growth rate of 15.6%, from 2023 to 2032.
Region-wise, North America dominates the global flood insurance market. This has been a result of extreme weather conditions leading to a risk of flooding. Hence, more people have been inclined to invest in flood insurance coverage. Following North America, Asia Pacific tends to be the fastest-growing market for flood insurance. An increasing awareness related to flood damages has contributed to this growth.
Factors driving growth in the market include an increase in the frequency and severity of floods. Government agencies, insurance companies, and community organizations have also enabled awareness regarding the importance of protection against the risks of flooding. Growing urbanization also provides additional opportunities for growthsince changes in land use and drainage patterns increase the potential risk of flooding. Simultaneously, the high premium costs of flood insurance policies are a challenge to the industry.Misconceptions about flood risks and coverage also tend to be an issue.
Insurers Dominating the Market
Key players operating in the flood insurance market include Chubb Limited (NYSE:CB), Zurich Insurance Group Ltd (OTC:ZURVY), and Tokio Marine Holdings, Inc. (OTC:TKOMY). Let’s take a look at some of the most recent developments undertaken by these firms.
Chubb Limited (NYSE:CB)is one of the largestproperty and casualty insurance companies worldwide. On November 14, Chubb Limited (NYSE:CB)released a survey, according to whichtheUS mid-market companies tend to be unprepared against the risks of flooding. Chubb Commercial Insurance Flood Risk Survey further revealed that commercial flood risk is highly underestimated. This is because most companies do not purchase flood insurance as they believe that their property insurance covers some, all, or most types of flooding. Hence, businesses need to build resilience in their properties and operations against natural disasters such as floods. Through the survey results, Chubb enables organizations to make more informed decisions in this regard.
Zurich Insurance Group Ltd (OTC:ZURVY)is a known multi-line insurer serving people and businesses in more than 200 countries and territories. Other than providing insurance protection, the company offers prevention services to promote well-being and enhance climate resilience. On November 9, Zurich Insurance Group Ltd (OTC:ZURVY)reported that Farmers Group, Inc. (FGI), a wholly-owned subsidiary of the company, has agreed to acquire three brokerage entities as well as Farmers Exchanges’ flood program servicing arm, for $760 million. The brokerages include Kraft Lake Insurance Agency, Western Star Insurance Services, and Farmers General Insurance Agency. Despite the severe flooding and hail storms in Europe during the third quarter, the company has also been successful in keeping losses within the guided range for 2023.
Tokio Marine Holdings, Inc. (OTC:TKOMY)is a multinational insurance holding company based in Tokyo, Japan. On November 10, the companyannounced the establishment of Tokio Marine Resilience Co., Ltd., as a 100% owned company subsidiary, that will engage in disaster prevention and mitigation. The new businessaims to provide comprehensive solutions that cover all phases of the disaster prevention and mitigation value chain including assessment, preparedness, evacuation, and recovery. This will also help address the causes of damage such as flooding, landslides, earthquakes, and tsunamis. Hence, Tokio Marine Holdings, Inc. (OTC:TKOMY)will be contributing to natural disaster preparedness which is a prominent issue globally.
You can also take a look at the top insurance companies in the US. Now that we have analyzed the global flood insurance industry, we can move to the 15 best flood insurance companies heading into 2024.
15 Best Flood Insurance Companies Heading into 2024
15 Best Flood Insurance Companies Heading into 2024
Our Methodology:
In order to compile a list of the 15 best flood insurance companies heading into 2024, we used a consensus approach to gather all public and private companies operating in the flood insurance market. We studied industry reports from sources including Allied Market Research, Advance Market Analytics, Business Research Insights, HTF Market Intelligence, Industry Growth Insights, and Verified Market Research to gather a list of these flood insurance companies. We also consulted Investopedia and CNBC.
Once we had made a comprehensive list using consensus, we sourced the market capitalization for all the public flood insurance companies from Yahoo Finance. All market capitalizations have been cited, as of December 11.
Due to a lack of publicly disclosed information from private flood insurance companies, we sourced their estimated annual revenue from ZoomInfo. Since these revenues have been estimated, we have listed them down as 'estimated annual revenue'. The estimated revenue may not be entirely accurate, but a close depiction of the company's actual revenue.
We compared all public and private flood insurers to find the top flood insurance companies globally. Finally, we enlisted the best flood insurance companies heading into 2024 in ascending order of their market capitalization or estimated annual revenue.
15 Best Flood Insurance Companies Heading into 2024
Assurant, Inc. (NYSE:AIZ) is a global provider of risk management products and services with headquarters in Atlanta. The company provides flood insurance under the National Flood Insurance Program (NFIP).Its private flood policies offer higher coverage limits and flexible add-ons for commercial properties. FlexCash, an add-on to the firm’s commercial product, is a patented discretionary payout of up to $10,000 designed to help policyholders with coverage gaps in case of a flood loss. Assurant, Inc. (NYSE:AIZ) has a market valuation of $8.82 billion, as of December 11.
14. Suncorp Group Limited (OTC:SNMYF)
Market Capitalization:$11.59 Billion
Suncorp Group Limited (OTC:SNMYF) is one of the largest general insurance groups in Australia. The company’s Home and Contents Insurance has three levels of cover, and each level automatically includes flood cover.The Claims Team gets in touch with clients soon after their claim is lodged in case of a flood or storm. As of December 11, Suncorp Group Limited (OTC:SNMYF) is worth $11.59 billion and ranks as one of the best flood insurance companies heading into 2024.
13. American Family Insurance
Estimated Annual Revenue:$14.40 Billion
American Family Insurance is another private American insurer that offers flood insurance. The company conveniently offers flood insurance from the National Flood Insurance Program to help against water damage. The Emergency Water Removal Program also helps clean up safely when filing a claim. American Family Insurance has an estimated annual revenue of $14.40 billion as reported by ZoomInfo.
12. Sompo Holdings, Inc., (OTC:SMPNY)
Market Capitalization:$16.13 Billion
Sompo Holdings, Inc., (OTC:SMPNY) is one of the 15 best flood insurance companies heading into 2024. With a global networked team of specialized property underwriters, the company offers a full range of primary, ground-up, and excess property coverages. It provides coverage for exposures such as floods, windstorms, and earthquakes. Sompo Holdings, Inc., (OTC:SMPNY) has a market capitalization of $16.13 billion, as of December 11.
11. GEICO
Estimated Annual Revenue:$25.10 Billion
The Government Employees Insurance Company (GEICO) ranks as one of the best companies offering flood insurance in the United States. It is a wholly-owned subsidiary of Berkshire Hathaway Inc. (NYSE:BRK-B). Clients can purchase their federally administered flood insurance through the GEICO Insurance Agency. This covers damages not covered by homeowner policies. The company’s agents can be contacted to get a free flood insurance quote.According to ZoomInfo,GEICO has an estimated annual revenue of $25.10 billion.
10. The People's Insurance Company (Group) of China Limited (OTC:PINXY)
Market Capitalization:$27.29 Billion
The People's Insurance Company (Group) of China Limited (OTC:PINXY) is a Chinese listed insurer that ranks as one of the best flood insurers heading into 2024. The companylaunched the first catastrophe insurance product in China including hurricanes and floods. It has also enhanced its response ability to claimsin case of natural disasters including floods, typhoons, hail, and frost. As of December 11, The People's Insurance Company (Group) of China Limited (OTC:PINXY) is valued at $27.29 billion.
9. China Pacific Insurance (Group) Co., Ltd. (OTC:CHPXF)
Market Capitalization:$27.77 Billion
China Pacific Insurance (Group) Co., Ltd. (OTC:CHPXF) is another best flood insurance company heading into 2024. It is a leading insurance group headquartered in Shanghai. It has received numerous insurance claims in flood-battered areas in China. China Pacific Insurance (Group) Co., Ltd. (OTC:CHPXF) has a market capitalization of $27.77 billion, as of December 11.
8. Liberty Mutual Group
Estimated Annual Revenue:$28.40 Billion
Liberty Mutual Group is an American diversified global insurer. It is a part of the Write Your Own Program under the Federal Emergency Management Agency (FEMA) in all 50 states, in over 21,000 communities. The company representatives can provide clients with a no-obligation rate quote for flood insurance. As reported by ZoomInfo, Liberty Mutual Group has an estimated annual revenue of $28.40 billion. Liberty Mutual Group ranks as one of the best flood insurers heading into 2024.
7. USAA
Estimated Annual Revenue: $36.30 Billion
The United Services Automobile Association (USAA) provides insurance and banking products exclusively to members of the military, veterans, and their families. It is another renowned flood insurance company heading into 2024. The company offers flood insurance through the National Flood Insurance Program to help cover flood damages caused by hurricanes, melting snow, rain, and other events.The USAA Insurance Agency can also help clients get coverage from a private insurer. USAA has an estimated annual revenue of $36.30 billion as cited from ZoomInfo.
The Allstate Corporation (NYSE:ALL) is an American insurance provider that ranks as one of the 15 best flood insurers heading into 2024. Homeowners can protect their houses and belongings by purchasing a National Flood Insurance Program (NFIP) policy through a knowledgeable Allstate agent. The company makes the recovery process quicker, easier, and less costly. The Allstate Corporation (NYSE:ALL) is worth $36.46 billion, as of December 11.
