Neptune Flood Faces Scrutiny as Private Flood Insurance Market Expands

Washington, D.C. – Senator Elizabeth Warren (D-Mass.) is pressing Neptune Flood, a rapidly growing private flood insurance provider, for details about its business model and its potential impact on affordability and reliability in the flood insurance market. The scrutiny comes as the company aims to expand its role in a market traditionally dominated by the federal government’s National Flood Insurance Program (NFIP).

Warren’s Concerns

In a letter sent Tuesday, February 17, 2026, Senator Warren, Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, questioned Neptune’s strategy of advocating for a reduction in the NFIP’s role. According to reporting by The New York Times, Neptune officials proposed that the NFIP stop issuing new policies at a White House event in October 2025.

Warren expressed concern that cutbacks to the NFIP could “depart communities more exposed to flood damage.” She similarly raised questions about Neptune’s reliance on artificial intelligence (AI) for risk assessment and premium pricing, particularly regarding transparency and the ability of customers to understand and challenge their premiums.

The Senator’s letter highlights that Neptune operates as a managing general agent, selling policies on behalf of insurance companies and does not issue its own policies or handle claims directly. Despite emphasizing affordability and transparent pricing, Warren suggests aspects of the company’s policies may undermine those goals.

The Rise of Neptune Flood

Neptune Flood has positioned itself as a key player in the private flood insurance market, particularly following disruptions to the NFIP. A government shutdown in October 2025 effectively paralyzed the NFIP, preventing homeowners from obtaining or renewing federal flood insurance and potentially delaying claims payments.

The company capitalized on this situation, with its stock climbing 24 percent during the shutdown. Neptune’s president and CEO, Trevor Burgess, described the timing as “fortuitous,” noting the advantage of being “open for business” while the NFIP was “closed.”

Project 2025 and the Future of the NFIP

Neptune’s strategy aligns with the goals of Project 2025, a conservative policy blueprint that advocates for shrinking the NFIP and transitioning to a fully private flood insurance market. The NFIP currently holds approximately 4.6 million policies and is the nation’s primary flood insurer.

According to Neptune Flood Research Group, the NFIP is currently $22.525 billion in debt (including a $2 billion increase in 2025).

AI and Underwriting Concerns

A key component of Neptune’s business model is its AI-powered underwriting platform, Triton, which allows the company to forgo human underwriters. This raises concerns about the transparency and explainability of its premium calculations, and whether customers can effectively challenge the rates they are charged.

Next Steps

Senator Warren has requested a response from Neptune Flood by March 3, 2026, seeking further clarification on its business practices and its vision for the future of flood insurance in the United States.