New insurance solution client represents continued expansion into admitted market
Intermap supports climate resilience during record drought in the West
Strong renewals and MRR up 9.8% since year end
DENVER , April 5, 2022 /CNW/ - Intermap Technologies (TSX: IMP) (OTCQX: ITMSF) ("Intermap" or the "Company"), a global leader in geospatial content development and intelligence solutions, today announced that a second top-10 U.S. insurer started a three-year subscription to InsitePro®, Intermap's SaaS package that delivers property-specific risk analytics for underwriting flood insurance anywhere in the U.S. and Canada, using proprietary, global, 3D elevation data.
The U.S. private flood market has grown at a CAGR of 20% since 2016. Through 2021, the market growth has accelerated in response to a hardening property insurance market and the rollout of the National Flood Insurance Program's Risk Rating 2.0 updates. InsitePro revenue growth mirrors the private flood market over that period, including a 38% growth in MRR between December 2020 and December 2021. With the latest subscriptions and renewals, InsitePro's MRR for April has risen by 9.8% since the end of 2021.
Intermap's newest client is its second subscription among the top-10 U.S. property and casualty insurers based on 2020 net premiums written (source: AM Best). The subscription will enable the new client to expand into private flood insurance, the market segment of flood insurance not underwritten by the National Flood Insurance Program (NFIP) or underwritten as a part of the NFIP's Write Your Own (WYO) program.
The subscription comes as InsitePro continues with strong renewals in 2022, including most recently a major commercial insurer and California Flood Insurance, a managing general agency (MGA) with underwriting authority on behalf of several Lloyd's of London syndicates. Natural catastrophe insurance in California is poised to be especially difficult with drought and wildfire likely to again cause record-level losses. Drought conditions complicate flood risk by making the ground less permeable and areas recently burned by wildfire prone to flooding. A recent study found that more than half of the days with extremely high wildfire risk in parts of the Pacific Northwest, Idaho, Nevada and Utah could be followed by severe downpours within a year (source). Intermap's California clients require the best data and analytics available to maintain profitable portfolio growth.
Private flood insurance is one of the largest untapped sources of new premium for U.S. insurers, with over $5 billion in unwritten premium available on the 85% of property in the U.S. currently not covered for flood (source iii and U.S. Census). This source of available premium, supported by robust and mature underwriting analytics such as InsitePro, is attracting more interest from the insurance industry than ever. The largest U.S. insurers, especially admitted insurers that work within the regulatory frameworks of state Departments of Insurance, are beginning to participate in flood insurance for the first time. There are approximately 2,500 admitted insurers in the U.S., representing a new and unserved market for InsitePro.
"Intermap's U.S. insurance business is continuing its strong growth in 2022," said Patrick A. Blott, Intermap's Chairman and CEO. "Flood risk is a geospatial problem, and InsitePro solves it for underwriters. We help clients grow their written premium, enabling the international risk diversification market to reduce the amount of emergency funds paid by the federal government every year to help property owners, including homeowners, recover from severe flood damage."
https://www.newswire.ca/news-releases/top-10-u-s-insurer-subscribes-to-intermap-s-insitepro-r--835601359.html