Integrated offering creates new cross-selling openings in the underpenetrated flood insurance market for Vertafore PL Rating customers
Mar 05, 2014
Bothell, WA –March 5, 2014 –Vertafore, the leading provider of software that transforms the business of insurance, today announced a strategic partnership with StoneRiver National Flood Services (NFS) creating an easier way for independent agents to quote and cross-sell flood insurance to clients when quoting and selling homeowner insurance. The partnership integrates NFS’ flood quoting platforms with Vertafore’s PL Rating to provide a flood insurance quote solution that is easy to understand and use.
From 2003 to 2012, total flood insurance claims averaged nearly $4 billion per year*. However, most homeowner insurance policies do not cover floods. Those requiring flood protection must purchase an additional policy either in the private flood market or, far more commonly, through the FEMA National Flood Insurance Program (NFIP), which has approximately 5.5 million policies in force. Few homeowners fully understand their true level of risk and too often they are not presented with a flood insurance quote. In fact, fewer than 10 percent of homeowners carry flood insurance. The low penetration of flood insurance not only leaves many unprotected, but insurance agencies are also at risk of E&O exposure when not offering coverage.
“Most homeowners can get a flood insurance policy for under $400 a year, and yet a six inch high flood in a 2,000 sq. ft. house could easily cost a homeowner $40,000 if they are uninsured,” said Keith Brown, CEO of NFS. “Considering that 90 percent of all disasters include flooding, it is imperative that agents provide homeowners a risk assessment and all insurance options.”
This integration between Vertafore and NFS makes selling flood insurance for Vertafore’s 20,000 agent users simpler by providing a premium indication and personalized flood proposal on all homeowner insurance quotes. It also enables the agent to easily complete a flood policy with their carriers represented by NFS without rekeying information since the data to produce a flood quote was already captured in the homeowner workflow of PL Rating. The personalized proposal will include the home’s estimated risk of flood, potential losses from flood, a premium indication and a waiver of responsibility.
Brown added, “The flood insurance market is greatly underpenetrated. Obviously natural disasters like Hurricane Sandy, but also unexpected events like the recent Colorado floods, can strike without warning and leave homeowners in dire situations, and unfortunately for too many, uninsured when it comes time to rebuild. Presenting flood quotes returned in Vertafore PL Rating will give agents an easy way of ensuring their clients are protected and their agents earn additional commission. It’s the perfect selling opportunity for flood insurance.”
With exclusive relationships with over two-thirds of the carriers that write flood insurance, NFS is the leader in providing technology solutions to flood insurers participating in the NFIP. Vertafore PL Rating provides over 1.5 million homeowner insurance quotes annually and also has relationships with many of the same carriers NFS does business with through Vertafore PL Rating. This synergy provides additional time savings and efficiencies for agencies already working with carriers that sell flood insurance where agents had not yet approached them regarding this market opportunity.
“By connecting Vertafore’s comparative rating distribution with the flood quoting functionality of NFS, agents and carriers that use NFS as their processing partner will benefit from an easier and quicker way to grow their flood insurance business. At the same time ensuring their customers get the coverage they need,” said Dave Acker, Vice President, Strategic Market Development for Vertafore. “Our partnership with NFS delivers another competitive advantage to our customers that helps them sell more insurance efficiently and effectively while reinforcing their relationship with their customers as a trusted advisor.”
*All stats listed in the release are courtesy of the FEMA NFIP.*
About Vertafore Vertafore delivers software and services that transform the business of insurance. More than 20,000 customers rely on Vertafore to provide integrated technology that connects the entire industry with the most complete source of solutions—agency management, rating and connectivity, content management and workflow, information solutions and producer lifecycle management—so their businesses run better and are more profitable. For more information about Vertafore, please visit www.vertafore.com and follow Vertafore on