Lloyd’s of London insurers have called on the U.S. government to stop providing coverage for flood insurance damage, arguing that state support has become unsustainable and encourages irresponsible building of homes. Lloyd’s wants Washington to be “out of the risk-taking business” and leave it to the private sector. Asked how much flood business the private sector could take on, Lloyd’s said most should “transition to the private market.” It acknowledged, however, that “some” essentially uninsurable risks “may remain with the National Flood Insurance Program.”
Hank Watkins, president of Lloyd’s America, argued the private sector would charge “appropriate” prices that would prompt individuals to start rethinking how they will protect their homes and where they buy.”
