The following is the press release announcement for the latest FloodFlash claims record. For more information contact chris@floodflash or call 0203 608 6620.
Award-winning parametric insurer beats previous record of 6 hours set in February this year
[London, Nov 2022] Parametric insurance provider FloodFlash, the world’s first mass market parametric insurer, today revealed that they have broken record they previously held for fastest payment of a catastrophic property flood claim.
A FloodFlash policy is different to a traditional flood policy. Clients choose their trigger depths and payout values at the quote stage. When water reaches the client’s selected trigger depth, FloodFlash pay the pre-agreed payout.
The FloodFlash internet connected sensor installed at every client’s property sits at the heart of each policy and is the key to the claims success. The sensor measures flood depths, sending readings to FloodFlash HQ. Those readings provide the basis for claims processing and reduce the time and costs to administer claims dramatically.
One FloodFlash client owns a holiday home next to the River Chater, on the outskirts of Stamford, Lincolnshire. After the property flooded in 2016, they were unable to find affordable insurance through traditional means. With help from Stamford-based broker Joe Coverdale from Jentsen, they found FloodFlash.
Joe says: ‘Even when facing the most adverse risks, we always strive to deliver our client’s cover to ensure they have adequate protection. When it seemed impossible to find flood cover, FloodFlash quickly provided an affordable quote using their easy-to-use online platform, which most importantly satisfied our customer’s lender’s requirements.’
On 22nd November 2022, at 9.40am, the sensor at the Stamford property management client detected that their chosen trigger depth of 1m had been met. By 1.30pm, FloodFlash had paid the client in full. That’s 3 hours and 50 minutes between flood water reaching the client’s trigger depth and the payout being in their bank account.
The importance of fast claims
According to Business in the Community, 40% of small businesses fail to reopen after catastrophic flooding. FloodFlash have been established as one of the best ways to guarantee business survival thanks to their rapid claims. They pay most claims within 48 hours of flooding.
Paying claims fast helps in a number of ways:
- Limiting business interruption
- Reducing long term property damage from damp and mould
- Cash-flow is protected so that businesses can continue to operate in the aftermath of a flood by paying wages or finding alternative premises quickly.
- Psychological impacts are smaller – it’s estimated that the average time to recover from a flood psychologically is around two years. Resolving claims quickly reduces the insecurity around finances to a much shorter time, benefiting the mental health of flood victims.
The client said: ‘When a claim was triggered within only a couple of months of incepting cover, FloodFlash were truly exceptional.’
FloodFlash CEO and former resident of Stamford, the site of the claim, Adam Rimmer said: “One of the ways that FloodFlash helps clients is by getting cash into the hands of those impacted faster than any other product on the planet. Today I feel proud of the whole FloodFlash team for delivering that experience to another customer at the time they need it the most.
“FloodFlash has customers from California to Aberdeen, so happening setting this new record in the town I grew up in brings a bonus element of personal satisfaction.”
80% of the world’s catastrophic flood losses aren’t insured. That’s $58bn of uncovered damage, and it’s getting bigger each year because of climate change, population growth and urbanization. FloodFlash is an insurance technology company that combines computer models, cloud software and internet-of-things sensors into flood cover that protects those the insurance industry has left behind. FloodFlash is headquartered in London, is a registered coverholder at Lloyd’s of London and is authorized and regulated by the Financial Conduct Authority.
A brief overview of FloodFlash rapid payouts:
- February 2020: FloodFlash set the pace, paying clients as quickly as 26 hours after flooding caused by Storm Ciara which went on to cause £1.6bn in damage.
- January 2021: FloodFlash reduced the fastest claim time to 10 hours during Storm Christoph which swept across North-east England and Wales.
- February 2022: FloodFlash paid a claim in just 5 hours and 36 minutes after Storm Franklin notable for having followed named Storms Dudley and Eunice.
- November 2022: FloodFlash smash the record once again, paying one client in 3 hours and 50 minutes.