Parametric flood insurance company FloodFlash, the first insurance provider to pay catastrophic flood claims as fast as four hours, announced today they have entered the U.S. insurance market. After a devastating hurricane season in the U.S., policyholders have been left waiting weeks, if not months, to receive claims to be able to rebuild their businesses and revive local economies. In addition, 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 is aiming 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.
The first parametric flood insurance available to the mass market, FloodFlash’s unique 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% of small to mid-size businesses carry flood insurance.
CEO of North America Mark Hara, a marketing and insurance expert who previously led at Bold Penguin and Mylo powered by Lockton, is executing the U.S. go-to-market strategy across five states to start – Florida, Virginia, Texas, Louisiana, and California. He has grown a world-class team and distribution partnerships with brokers across the country.
Since launching in 2019, FloodFlash has established a track record for combating extreme weather losses. Their proprietary parametric technology provides flood insurance for businesses of all sizes, making it easier and faster to claim and rebuild. Aside from broader availability, a key advantage to FloodFlash’s coverage is how simple it is. 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. On November 22, 2022, FloodFlash paid a client in full in under four hours, breaking its own record for claim payments.
Amidst increased frequency of extreme weather due to climate change, urbanization and a strapped insurance market, new technologies and products are needed more than ever to reinvigorate the flood insurance market. FloodFlash has already made a huge impact in the underinsured market in the U.K., and after a $15 million Series A raise in the spring, the company 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. 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,” said Mark Hara, CEO of North America. “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.”
Source: Cision PR Newswire