The US must reform its flood insurance market, including allowing the private sector to play a bigger role, according to Lloyd’s CEO Inga Beale.

She says Hurricanes Harvey and Irma show the inadequacy of the government-run National Flood Insurance Program, which is saddled with debt of more than $US24 billion ($31 billion).

“We urgently need reform to the flood insurance market in the US to make… communities more resilient,” Ms Beale said. “We need to find ways to pay these rising costs.

“That’s why Lloyd’s is actively pursuing the further development of the private flood insurance market in the US, which will help to promote flood insurance and encourage more people to take up cover.

“We need clear authorisation from Congress for the private flood insurance market to allow the market to continue to grow and move more risk into the private sector.

“This will provide consumers with more choice and better coverage options in some cases.”

The two hurricanes do not yet meet Lloyd’s market turning event (MTE) criteria, for losses that exceed $US200 billion ($250 billion).

“However, the situation could change,” Director of Performance Management Jon Hancock said. “We are evaluating all the latest information from the region and, as announced earlier this year, we have new measures in place to help the market deal with an MTE.”