FloodFlash founder Ian met co-founder Adam while working at RMS, the world’s largest catastrophe risk modelling firm, where they were instrumental in the design of parametric insurance products for large corporate and governmental clients. Notable examples include $200m of insurance cover issued by the New York Metropolitan Transit Authority (after devastating flooding in Hurricane Sandy) and the Turkish Catastrophe Insurance Pool.
Having seen this new kind of flood insurance work for larger clients, they set up FloodFlash in 2017 to make parametric insurance available to everyone. Using a combination of advanced risk modelling and IoT sensor technology, FloodFlash removes the uncertainty, time and costs associated with traditional insurance products. As a result, they can offer affordable quotes, to high flood risk businesses that are otherwise uninsurable. The company launched fully at the beginning of this year, and is now providing cover for commercial properties across the UK.
How parametric is revolutionising flood insurance
By 2050 the number of homes at risk of flooding could reach 2.5 million – a rise of 129 per cent from the present day. Traditional insurers already struggle to provide cost-effective cover for high-risk customers so rates are on the rise. In this seminar, we explore how the insurance industry is looking to meet this demand with new affordable cover and close the widening protection gap.