About

FloodFlash

The story

After the extensive flooding caused by Hurricane Sandy in 2012 the New York Metropolitan Transport Authority (MTA) found it very difficult to renew their flood cover. We helped them develop a different type of insurance: instead of paying out based on damage, this "parametric" cover would pay $200 million if water rose above a certain depth in the New York harbour.

We knew this form of insurance had a wider appeal than just those with the biggest budgets. We started FloodFlash with the ambition to make event-based cover available to everyone and to ensure that everybody is able to recover from catastrophe. Three years later we are even more dedicated to providing fast, flexible and affordable flood insurance to the people that need it most.

adam-sign Adam
ian-sign Ian

The business

The reason why parametric insurance is affordable compared to traditional insurance is down to the costs and uncertainty associated with each policy. The costs are greater in traditional insurance because they need to pay loss adjusters, claims teams, legal or other costs. Similarly, traditional insurers are more exposed to uncertainty when a flood occurs. They can’t predict the exact damage caused by a flood because of all the variables so their final bill is unknown – and they deal with this uncertainty by charging more premium or refusing to cover flood.

We agree a set payout for when a flood occurs which we measure using our sensor, so we don’t have the costs and uncertainty mentioned above. This means that our premiums can be significantly lower than traditional providers.

The sensor

Each policy we issue is linked to a mobile-connected sensor installed at the property. The sensor then reports any flooding. When the agreed trigger-depth has been reached the sensor alerts us. We then kick off the claims process – no documents required.

The sensor is an important part of FloodFlash insurance, so it is designed to last.

  • High-accuracy, ultra-sonic depth measurement
  • long-life battery to last 7-12 years
  • internet connectivity to send up-to-date flood data
  • memory chip to store data for when networks fail
  • tamper and storm resistant
  • simple, fast installation

The team

The FloodFlash family brings together a huge range skills and expertise from a huge range of disciplines. We all share the same values of clarity, invention and respect. Together, we’re confident we will achieve our goal and we can give everyone access to effective, affordable flood cover.