New ACE White Paper Describes Innovations in Flood Insurance Coverage Brought to Market Since Superstorm Sandy

  New ACE White Paper Describes Innovations in Flood Insurance Coverage
  Brought to Market Since Superstorm Sandy

Corporate risk managers can reduce exposure to additional financial losses if
                             another flood occurs

Business Wire

PHILADELPHIA -- November 15, 2013

ACE USA, the U.S.-based retail operations of the ACE Group, today announced
the release of a white paper exploring innovations in flood insurance
protection brought to market since Superstorm Sandy made landfall in October,
2012. The new white paper, “Innovations in Flood Insurance Protection,”
discusses the introduction of flood reinstatement coverage, which provides
excess of loss insurance above the remaining limits of protection in the
underlying property insurance policy.

Following the catastrophic losses of Superstorm Sandy, many businesses were
unable to obtain additional coverage, or were forced to reinstate limits of
existing policies at much higher cost, stricter coverage terms or substantial
increases in deductibles. Since Superstorm Sandy, massive flooding has also
devastated the cities of Calgary and Toronto in Canada, as well as Boulder,

“In the aftermath of Superstorm Sandy, many corporate risk managers whose
organizations had experienced a flood loss found their companies facing a new
exposure — because the financial limits of their existing insurance policies
were exhausted, they were responsible for additional financial losses in the
event of another flood,” said Jeremiah Konz, Senior Vice President, ACE North
American Property & Specialty Lines, and author of the new ACE white paper.
“With flood reinstatement coverage now available, risk managers unable to
acquire their customary policy limits at renewal have the option to buy
coverage to build back or build additional high hazard flood limit for
improved protection.”

Risk managers now have the option to buy additional standalone flood insurance
if the current coverage is renewed with decreased limits or sub-limits, or if
the high-hazard flood deductible in the primary program has dramatically
increased. In effect, the insurance augments the limits remaining in the
insured’s property insurance policy, even in cases where the limits have been
completely exhausted. The coverage terms, conditions and premium charged are
based on each insured’s high-hazard flooding exposures. Additionally, in cases
where a company building may be financed through a bank, inadequate insurance
coverage can reduce the chances of obtaining favorable loan terms, if not
eliminate it in its entirety. Flood limit reinstatement insurance provides an
additional layer of financial protection to prevent this.

To access the paper, please visit our website. The material presented in this
report is not intended to provide legal or other expert advice. It is
presented as informational only. Readers should consult legal counsel or other
technical experts, as applicable, with any specific questions they may have.

ACE’s Specialty Catastrophe Unit seeks to understand and define client
challenges to provide customized solutions that specifically address these
needs. It is highly regarded for its creative responses to complicated market
conditions, providing named storm deductible buydowns, offering multi-year
insurance arrangements, and developing parametric triggered coverage for
concentrated catastrophe exposures, in addition to the flood limit
reinstatement policy.

ACE’s Property & Specialty Lines Division offers comprehensive management
solutions for the property, marine, inland marine, energy and aviation
insurance needs of U.S.-based companies, ranging from mid-size domestic to
large multinational, as well as provide customized fee-for-service engineering
consulting for long-term client loss control solutions. For more information
about our range of products and services, please visit our website.

ACE USA is the U.S.-based retail operating division of the ACE Group, headed
by ACE Limited, and is rated A+ (Superior) by A.M. Best Company and A+
(Strong) by Standard & Poor’s. ACE USA, through its underwriting companies,
provides insurance products and services throughout the U.S. Additional
information on ACE USA and its products and services can be found at

The ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 53 countries, ACE provides commercial and
personal property and casualty insurance, personal accident supplemental
health insurance, reinsurance, and life insurance to a diverse group of
clients. ACE Limited, the parent company of the ACE Group, is listed on the
New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.
Additional information can be found at:


ACE North America Communications
Carla Ferrara, 215-640-4744
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