Neptune Flood Insurance’s Challenge
Founded in 2018, Neptune Flood has emerged as a key player in the insurance sector, offering innovative flood insurance solutions across the United States from their St. Petersburg, FL headquarters. With their intuitive platform, Neptune aimed to revolutionize how insurance policies are quoted and bound, reducing the process to under two minutes. However, as demand for reliable and rapid response times grows, maintaining this efficiency becomes a strategic priority. For Neptune’s Triton AI underwriting algorithms to deliver industry-leading quote response times, Neptune required a partner that could consistently meet their reliability and speed metrics for service level agreements (SLAs). Additionally, responding swiftly to catastrophic events such as hurricanes is critical to their service.
KatRisk Solution
Neptune turned to KatRisk, a provider known for its dynamic software with robust API capabilities and accurate flood footprint outputs. By integrating KatRisk’s API into Neptune’s operations, Neptune could harness alternative data fields and multipoint responses to streamline Triton’s quote response times and overall system efficiency. This partnership enabled Neptune to overlay KatRisk’s flood footprint outputs onto their exposures post-event, granting them unprecedented rapid insight into potential loss scenarios following major storms like Helene, Milton, Ida, Ian, Idalia, Beryl, and Debby. KatRisk’s infrastructure and modeling capabilities gave Neptune the detailed analysis necessary to factor in climate change impacts, supporting their single risk modeling approach.
Results
Through the partnership with KatRisk, Neptune has seen marked improvements in operational efficiency and response to catastrophic events. The ability to quickly understand potential losses has significantly benefited their strategic risk assessment processes. KatRisk’s flood models have consistently enabled Neptune to differentiate and accurately price flood risk. Following several catastrophe response events, Neptune saw fewer losses compared to industry peers, thanks, in part, to a pricing data provided by KatRisk. Neptune was able to make flood coverage a writable peril, capitalizing on this advantage to drive success in a challenging market.
Going forward, Neptune is set to enhance its policies, expand its agency network, and broaden its capacity provider panel, solidifying its market position. With SpatialKat deemed the most accurate flood model available, Neptune’s loss experience underscores the value of partnering with KatRisk. We are committed to supporting Neptune’s strategic initiatives that enable growth and a sustainable insurance ecosystem.
“Neptune’s loss experience, as the largest private flood insurance company in the United States, indicates that, of the flood models available in the market today, SpatialKat is by far the most accurate. KatRisk’s model granularity and ability to account for the impact of climate change support Neptune’s single risk modeling approach.”
Matthew Duffy, Managing Director & Chief Risk Officer