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.”
Certain information provided in this news release constitutes forward-looking statements. The words “anticipate”, “expect”, “project”, “estimate”, “forecast”, “will be”, “will consider”, “intends” and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap’s Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation