Company: FloodFlash
Co-Founders: Adam Rimmer and Ian Bartholomew
Website: http://floodflash.com
About FloodFlash
80% of the world’s catastrophic flood losses aren’t insured. That’s $58bn of uncovered damage – an amount set to increase over the coming decades. Our mission is to help more people recover from catastrophe using simple, flexible, parametric insurance.
One of the core challenges to providing flood insurance is establishing the value of damage that flooding might cause in order to set a price. FloodFlash turns the equation on its head. Rather than calculating damage after a claim, clients select payout values and trigger depths during the quote stage. FloodFlash installs a smart sensor at the client’s property. When the sensor installed at the client’s property measures flooding at the client’s selected depth, it sends the data to FloodFlash HQ and we pay the claim.
When we started our journey, parametric solutions typically fell into one of two categories: satellites and river or tidal gauges. While these approaches have benefits, they also have challenges. Satellites give a broad overview of flooding but compromise on accuracy and frequency of measurements while river or tidal gauges often introduce basis risk due to their location being far removed from the insured property. The high cost of these two approaches also prohibited all but the largest corporations being able to benefit.
Due to its size, ease of installation, and low cost, our internet-of-things sensor can be installed directly at any location(s) a customer wishes to insure. On-site installation drastically reduces basis risk, without compromising on accuracy. Its low-cost means we can support businesses of all sizes.
Our sensor sends us the data we need to manage claims in the time it takes to send a text message. This means we can pay claims in days, not months, reducing the stress involved in flood claims, as well as lowering claim values and speeding up recovery. In 2022, we achieved a new record claim time during Storm Franklin. 3 hours 50 minutes after the client’s trigger depth was reached, their full payout was in their bank.
Last year, we launched FloodFlash in the US, where we have gone from strength to strength. Across our markets, we are available through over 20,000 brokers, across all leading broking organisations. In the UK, we have helped clients through 9 named storm events and our sensors have triggered 100s of times. We have won over 30 industry awards, have received endorsements from parliamentarians from both major parties, and have developed partnerships with leading insurers. We also have developed exceptionally strong relationships with some of the world’s largest reinsurers.
These achievements are not only fantastic for FloodFlash, but for the wider fintech industry. The strong relationships we have with our capacity providers, brokers, and clients not only raises the reputation of, and trust in, insurance but also using technology to address a global issue.
I’ll end with a comment from Lloyd’s Chairman Bruce Carnegie-Brown: “This is what great insurance is all about – being there for customers at a point of need, reducing their stress with a rapid response and accelerating their recovery from disaster.”
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