FloodFlash, a parametric insurance technology company, is launching a new product aimed at bolstering business interruption insurance coverage in the United States ahead of the 2024 Atlantic hurricane season.
Called Flood BI, the new solution aims to address the challenge many businesses and public entities face in obtaining BI insurance coverage.
BI coverage is not included under National Flood Insurance Program policies and is rarely offered as standalone coverage by private carriers.
The Flood BI product is designed to support organisations at risk of flooding across the entire US, not just those in the Gulf and Eastern seaboard.
FloodFlash is a UK-based insurtech company that offers a novel type of rapid-payout insurance to help businesses and property owners manage their financial risk due to floods.
The company utilizes cutting-edge technology, including sensors and data-driven models, to provide parametric flood insurance
This means that payouts are triggered by predefined criteria such as water levels reaching a certain height, which is measured by a sensor installed at the insured property.
One of the key features of Flood BI is that there is no restrictions on how clients can use their parametric claim payments.
This flexibility allows for coverage of various aspects of BI, including non-damage BI and denial of access.
FloodFlash said the rapid-payment claims process is a core component of its offering, promising full policy value payouts within weeks of a flooding event.
This expedited claim service is crucial for businesses needing immediate funds to recover from interruption losses.
FloodFlash will also provide expert support to clients, assisting with everything from calculating BI limits to the placement of sensors and setting policy triggers.
Insurance coverage limits offered by Flood BI are up to $5 mn per location, and $2 mn in Florida.
For larger needs, up to $10 mn is available subject to underwriter approval, and a blanket limit of $10 mn for multi-location submissions.
The sectors that can benefit from this coverage include hotels and hospitality, sport and leisure, retail, healthcare and assisted living, real estate, manufacturing, municipality, and education.
Founded in 2016 by Adam Rimmer and Ian Bartholomew, FloodFlash is part of a broader trend towards leveraging technology to make insurance more accessible and responsive to the specific needs of customers.
The company has gained attention for its innovative approach to flood risk, which significantly reduces the uncertainty and delays typically associated with flood insurance claims.
Flooding causes billions of dollars in losses across the US every year yet only 20% of those losses are covered by insurance – and a massive part of that uninsured loss comes from business interruption. The BI options on the market are too few and offered too rarely
Rich Coyle, FloodFlash US commercial director
“Flood BI takes the same principles of the FloodFlash product and applies them for a truly under-served section of the market.”
Backed by Munich Re, FloodFlash expanded into the US insurance market in early 2023.
Unlike traditional insurance, which may involve lengthy claims processes and assessments, FloodFlash aims to provide quick and automatic payouts.
The simplicity and speed of this model enhance its appeal to those who need immediate funds to begin recovery after a flood.
by Peter Sonner
