WARREN RAISES CONCERNS WITH NEPTUNE'S PRIVATE FLOOD INSURANCE BUSINESS MODEL AS INSURANCE COSTS SOAR FOR AMERICANS

The following information was released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs:

"Given the way Neptune appears to be positioning itself echoing Project 2025's call for an end to NFIP Congress needs to understand the company's role in the market and examine its claims to provide affordable and reliable insurance."

Washington, D.C. Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Neptune Flood, a private flood insurance provider, with questions and concerns about Neptune's business model as flood insurance costs soar for the American people.

"According to new reporting, Neptune 'made pitches at meetings in the fall at the White House and the Treasury Department,' and "proposed that the National Flood Insurance Program (NFIP) stop issuing new policies." Industry experts have warned that these kinds of cutbacks could 'leave communities more exposed to flood damage.' I write with concerns and questions about your overall business model and your reliance on artificial intelligence to assess risk and price policies, especially given the potential that your proposed approach would raise costs and otherwise harm communities across the country," wrote the Senator.

"According to its SEC filings, Neptune is a managing general agent that sells policies on behalf of the insurance companies that are also known as capacity providers. As an intermediary between the policyholder and traditional insurers, Neptune does not issue its own policies or handle any claims," wrote the Senator. "In its public statements, Neptune has emphasized affordability and transparent pricing. But aspects of the company's policies may undercut those goals."

"Neptune's reliance on its in-house AI underwriting platform, Triton, enables the company to completely forgo any human underwriters ... This raises serious concerns as to whether Neptune can explain its own inputs into Triton, how premiums are calculated, and whether or not customers can challenge or even understand the premiums they are paying," wrote the Senator.

The Senator concluded: "It is critical that consumers have access to affordable flood insurance and can rely on insurers holding up their end of the deal when disaster strikes ... NFIP, while in need of reform, has been the primary provider of flood insurance and played an essential role in addressing systemic risk over the past 50 years as the private industry was unable to take on flood peril. Given the way Neptune appears to be positioning itself echoing Project 2025's call for an end to NFIP Congress needs to understand the company's role in the market and examine its claims to provide affordable and reliable insurance."

The Senator asks for responses to her questions by March 3, 2026.