FloodFlash is an award-winning parametric flood MGA. With a diverse team spanning two continents, they help protect thousands of organisations in the UK and US from catastrophic flooding. Find out FloodFlash origins below.
The flood insurance gap
Every year, catastrophic flooding causes billions of dollars around the world. The real catastrophe is that over 80% of that is completely untouched by insurance. What’s more, thanks to a combination of urbanisation, population growth and climate change, the problem is getting worse over time.
How have the traditional insurance markets dealt with the problem? Having decided they can’t price these risks correctly, they are resorting to punitive premium increases or in some cases leaving catastrophe markets entirely. That leaves millions of people, businesses and communities flood exposed and having to hold on to some, if not all, of their risk.
Where FloodFlash comes in
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. FloodFlash founders Adam Rimmer and Dr Ian Bartholomew 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.
They knew this form of insurance had a wider appeal than just those with the biggest budgets. They started FloodFlash with a singular mission: to use parametric insurance to help more people recover from catastrophe . Five years later FloodFlash is even more dedicated to providing fast, flexible and affordable flood insurance to the organisations that need it most.
The parametric difference
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.
FloodFlash agrees a set payout for when a flood occurs which we measure using our sensor, so FloodFlash policies don’t incur the costs and uncertainty mentioned above. This means that FloodFlash premiums can be significantly lower when compared with traditional providers.
Our insurance partners
As traditional catastrophe becomes harder to come by, some of the world’s biggest insurers are backing parametric products. FloodFlash is no different. Having been coverholders at Lloyd’s of London since launch and FloodFlash is supported by some of the world’s biggest and most exciting reinsurance partners.
FloodFlash also boasts excellent partnerships within the broking sector with many of the world’s top brokerage organisations counting FloodFlash amongst their parametric flood offering.
Awards and recognition
FloodFlash has won over 30 industry awards since 2019 including awards for Broker Service, IoT Technology and Claims Experience as well as MGA of the Year at the MGAA Awards a year after launch.
The business has also been featured in top fintech and insurtech lists by Fintech Global Insurtech, The Europas, Sonr, Business Cloud, Tech Round and Hyer. Press coverage includes multiple articles in the Wall Street Journal and TV coverage on the BBC.