Amwins, a global specialty distribution company based in London, has partnered with insurtech Floodbase to insure California municipalities against previously uncovered losses from atmospheric river flooding. Launched a municipal flood insurance program aimed at
California’s public sector has little protection from atmospheric river damage, which costs the state an average of more than $1 billion annually. This leaves communities, critical facilities, and municipalities with a lack of effective existing insurance options to cover losses in the event of a loss or a lengthy adjustment period. , explains Amwins.
Last year, the atmospheric phenomenon caused water levels in the Mississippi River to increase 15 times, costing California between $5 billion and $7 billion. Currently, climate change is expected to increase the annual damage caused by atmospheric rivers, which is expected to double during this century.
Over the past 20 years, federal aid has covered less than 1% of economic losses from atmospheric rivers, and many of these funds have not yet been obligated to local regions.
With this launch, Amwins and Floodbase aim to close the insurance gap with insurance payouts that automatically adjust according to the magnitude of atmospheric river floods, allowing local governments to insure a portion of their flood coverage. has already generated binding coverage from public sector customers in California. New parametric product.
The program provides funding that local governments can use at their discretion to fund emergency responses, replace lost tax revenue, establish housing rehabilitation programs, and repair public infrastructure. Provides quick access.
Alex Kaplan, Executive Vice President of Alternative Risk at Amwins, commented: “California’s atmospheric river season lasts from November to March and is quickly becoming as destructive as the North Atlantic hurricane season or the Midwest tornado season.
“Economic losses from flooding reduce tax revenues and impact every sector and industry, from city budgets to banking, agriculture and tourism. It will bring much-needed compensation and stability to the state’s local governments.”
Bessie Schwartz, CEO of Floodbase, added: “Public sector leaders across California recognize the growing threat of atmospheric rivers and understand the dire financial situation municipalities can be left with after flooding. The annual storm has effectively become hurricane season on the West Coast.
“This program provides fast, flexible funding that can be deployed as needed immediately after a flood. It is a type of economic backstop that has not been available before.”
