The program aims to protect municipalities from previously uncovered losses caused by atmospheric river flooding, a growing threat due to climate change.

Atmospheric rivers, capable of carrying 15 times the water volume of the Mississippi River, have caused between $5 billion and $7 billion in damages in California last year alone. On average, this weather phenomenon costs the state over $1 billion annually. Despite the scale of destruction, California’s public sector has had limited insurance options, leaving communities and local governments vulnerable to extensive damage and slow recovery

Alex Kaplan, Executive Vice President, Alternative Risk, Amwins, commented: “The California atmospheric river season runs from November through March and is fast becoming just as costly as the North Atlantic hurricane season or Midwest tornado season.

“Economic loss due to flooding decreases tax revenue and affects every sector and industry, from city budgets to banking, agriculture, and tourism. Our program with Floodbase brings much-needed coverage and stability to local governments in a state which insurers have been leaving.”

Bessie Schwarz, Chief Executive Officer, Floodbase, also commented, saying: “Public sector leaders across California recognise the growing threat of atmospheric rivers, and understand the dire financial position that municipalities can be left in following a flood.”

She added: “These annual storms have essentially become the west coast’s hurricane season. This program delivers fast, flexible funds that can be deployed as needed immediately following a flood – the type of economic backstop that was just not available before.”