Neptune Flood says USD 2.6 billion in NFIP subsidies persist five years into Risk Rating 2.0
NP•Neptune analysis says NFIP underpricing remains
Neptune Insurance Holdings Inc. analysis of FEMA data found NFIP underpricing of about USD 2.6 billion a year persists five years into Risk Rating 2.0.
- More than half of NFIP policies now price at full risk, up from one-third in December 2022.
- About 1,500,000 policyholders, or 42% of the program, still pay below full-risk rates under the model.
- An 18% annual rate cap implies another USD 10-13 billion of subsidies before the gap closes in the late 2030s.
- Subsidies are concentrated in Florida at 48%, about USD 1.2 billion per year.
