The product is designed to provide flexible coverage for low and moderate flood risks. It uses Swiss Re’s proprietary flood modeling for rating purposes along with with customized policy forms developed by Flood Services Corp.

Milliman said that by licensing the product through Milliman Appleseed, insurers can adopt Swiss Re’s simplified product offering and avoid extensive product development while also reducing state-by-state regulatory costs and time. Milliman Appleseed is licensed to submit loss costs, rating factors, and risk scores with state regulators. Swiss Re’s clients will be able to license rates and forms to offer them alongside homeowners’ policies.

Dave Evans, a consulting actuary with Milliman, said the product “changes the economics of flood insurance, a critical step to close the protection gap in areas outside of currently mapped floodplains, which are the least insured today.”

“This is an important step to further opening the door to the private flood insurance market in the U.S.,” said Matt Junge, head, Property Solutions, US and Canada, at Swiss Re.