(Image source: FloodFlash website.)
Parametric flood insurance company FloodFlash (London), which describes itself as the first insurance provider to pay catastrophic flood claims as fast as four hours, announced its entrance into the U.S. insurance market.
FloodFlash announces its entrance in the context of the aftermath of a devastating hurricane season in the U.S., where policyholders have sometimes been left waiting weeks, if not months, to receive claims to be able to rebuild their businesses and revive local economies. A statement on the market entrance adds that, in the wake of Hurricanes Ian and Nicole, traditional insurers are hesitant to reinsure, leaving businesses without many options and contributing to the $58 billion global flood insurance gap, with the U.S. as the largest contributor. FloodFlash says it aims to augment the flood insurance market in the U.S. by using its parametric technology to make flood insurance available to businesses that can’t get coverage anywhere else.
Characterizing its offering as the first parametric flood insurance available to the mass market, FloodFlash says its coverage combines IoT sensor technology, computer models, and cloud software to provide flood coverage to those the insurance industry has left behind. Despite the prevalence of flood risk in America, fewer than 5 percent of small to mid-size businesses carry flood insurance, the FloodFlash statement says.
As CEO of North America, Mark Hara, a marketing and insurance expert with experience at Bold Penguin and Mylo powered by Lockton, is tasked with executing the U.S. go-to-market strategy across five states to start: Florida, Virginia, Texas, Louisiana, and California. Hara has grown a world-class team and distribution partnerships with brokers across the country, according to FloodFlash
Since launching in 2019, FloodFlash says it has established a track record for combating extreme weather losses. The company says its proprietary parametric technology provides flood insurance for businesses of all sizes, making it easier and faster to claim and rebuild. Aside from broader availability, the company says a key advantage to its coverage is simplicity. Customers choose a depth and payout amount for their policy, and when flooding reaches the depth selected, the insurance pays out, typically within 48 hours. FloodFlash reports that, on November 22, 2022, it paid a client in full in under four hours.
Closing the Flood Protection Gap
FloodFlash asserts that it has already made a significant impact in the underinsured market in the U.K., and following a $15 million Series A raise in the spring, the company says it is ready to bring its impact across the pond to close the flood protection gap in the U.S.
“I’m excited to bring this simple, tech-enabled flood insurance to the businesses that need it most,” comments North America CEO Mark Hara. “FloodFlash can provide excess coverage, fill deductibles or cover what other policies do not – providing a coverage option for those with nowhere else to go. It’s a delight to be working with forward-thinking brokers who are dedicated to solving client problems. Together we will help address the flood coverage gap that impacts every single state.”