Case Study: Palomar Specialty achieves risk-based flood pricing and profitable growth with AIR Worldwide's Flood Model

Palomar Specialty Utilizes the AIR Flood Model to Develop Risk-Based Pricing in California

Palomar Specialty Insurance Company, a California-based catastrophe insurer, wanted to expand its offerings with a flood product that would be affordable, profitable, and actuarially sound. To do that, Palomar needed a more precise way to assess flood risk at thousands of individual locations, beyond the broad zones provided by FEMA maps. Palomar worked with AIR Worldwide and its AIR Inland Flood Model for the United States to support this effort.

AIR Worldwide’s flood model was integrated into Palomar’s pricing workflow to help evaluate exact-address flood exposure, apply underwriting guidelines, and generate risk-based rates in minutes. The solution powered Palomar’s Flood Guard program, a private flood offering approved by the California Department of Insurance, with coverage up to $5,000,000 for dwelling, $1,000,000 for personal property, and $50,000 for loss of use. As a result, Palomar gained near real-time risk selection, reduced uncertainty, improved profitability through risk-appropriate premiums, and expanded access to flood coverage for California homeowners.

Palomar Specialty

Jon Christianson

Chief Operating Officer