Happy Wednesday! This week we are discussing states with the highest flood insurance costs, coverage for future pandemics and Biden's executive order taking aim at noncompete agreements.

States With the Highest Flood Insurance Costs

Research from Valuepenguin.com reported the states with the highest flood insurance costs which are predominantly located in the Northeast and Midwest. The report also found that the national average cost of flood insurance is $734 annually. 

The top 10 states with the highest flood insurance costs are: 

• Vermont - $1512

• Connecticut - $1471

• Rhode Island - $1418

• Pennsylvania - $1305

• Massachusetts - $1294

• West Virginia - $1273

• New York - $1152

• Ohio - $1151

• Maine - $1119

Wisconsin narrowly missed the top 10, ranking #18 on the list. However, Wisconsin ranked #49 for one of the least insured states with a 0.7% ratio of active flood insurance. 

See the full report from Valuepenguin here: https://www.valuepenguin.com/average-cost-flood-insurance#high

 Is this the only way to cover future pandemics? 

High-profile members of the global P&C reinsurance industry are calling on government help in absorbing extreme losses from pandemic events, especially when it comes to business interruption. There has been increased contention around BI coverage after the mandatory closure of non-essential businesses. According to Insurance Business Mag, "Commercial insurance policies and traditional BI policies typically do not offer coverage for BI or supply chain disruption due to a pandemic such as COVID-19. Generally, BI insurance will only trigger if there is a direct physical loss to property - unless there is unique language written into the insurance contract that deems otherwise."

With evidence worldwide showing successful public-private partnerships to handle other potentially systemic exposures, like terrorism or flood, it's leaving some to wonder what the solutions could look like from a pandemic perspective that could address gaps in insurance policies like business interruption. Read more about the members who are interested in government-supported programs here. 

Biden Executive Order Takes Aim at Noncompete Agreements

A new executive order from Biden would "narrow the use of noncompete agreements to include only necessary instances of a dissolution of a partnership or the sale of a business. The legislation would also place the enforcement responsibility on the FTC and the Department of Labor, as well as create a private right of action. Notably, the legislation would require employers to make their employees aware of the limitations." Noncompete agreements are receiving scrutiny across the aisles and a number of states have enacted measures that restrict their use. Read more about the executive order here.

For more news, check out the Action news section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click  here to add your email to our emailing list. We hope that everyone has a great rest of their week!