FloodFlash an InsurTech startup focused on properties at risk of flooding raises £1.9m seed
In Action Summary
FloodFlash is a London-based startup specialising in flood insurance. Founded in 2017 and was developed by a team that spent decades by modelling and structuring of parametric catastrophe bonds at global reinsurers.
FloodFlash policies are ‘parametric’ or event-based which means claims are triggered during the event and settlement is then issued based on a pre-defined triggering event as opposed to the cost of damages.
FloodFlash’s tech-enabled approach makes competitive and customised flood insurance available to everyone, including those with the highest flood risk. A FloodFlash policy pays out a pre-agreed, fixed sum as soon as a pre-defined level of flooding occurs. The flood triggers an internet-connected water-sensor and the payment is made immediately to the policy holder.
According to Tara Reeves, partner at LocalGlobe: “Climate change is leading to more extreme weather events, but these are often hard to insure. Parametric insurance dramatically reduces underwriting and loss adjustment costs, and those savings can be passed on to the consumer.”
An algorithm is used to set tailored prices meaning that for the first time, personalised and competitive flood policies can be written for the highest-risk locations around the world
FloodFlash’s polices are currently being underwritten by Everest Re and having just raised £1.9m in seed funding, FloodFlash is positioning itself as a pioneer of parametric insurance products, which are particularly applicable to blockchain based use cases due to the fact that weather events can be verified by multiple data points.