Parametric Flood Insurance

Innovative parametric commercial flood insurance using ultrasonic sensors.

Climate Change Mitigation

Problem Addressed

As sea level rises and extreme weather events become more common, the risk of flooding in the UK and worldwide increases. The Joint Committee on the National Security Strategy predicts that by 2050 a third of the English coast will face flood pressure. Traditional insurance is unequipped to provide affordable flood coverage to businesses due to the associated costs and uncertainties. When damages are hard to predict, traditional insurers will charge higher premiums or refuse coverage altogether. These costs are higher because companies providing traditional flood insurance must pay substantial claims teams, loss adjusters, and legal teams. Uncertainty is also higher because predicting flood damage is very difficult due to the wide range of variables.

Solution Overview

FloodFlash is an innovative type of commercial flood insurance that resolves these issues using the principles of parametric flood insurance. Their approach involves installing a unique flood sensor on the insured property. When the sensor measured flooding at the client’s selected trigger depth, FloodFlash begins the claim. This removes uncertainty, cost and time from the claims process – reducing claim values and the disruption to the affected business. FloodFlash sensors are at the heart of every claim. They utilize ultrasonic measurement tech similar to those found in modern vehicle parking sensors to accurately determine flood depth with millimetre accuracy. They have mobile connectivity, run on batteries that last up to 12 years, are storm, fraud and tamper proof.

When FloodFlash is notified of a flood, they will perform basic checks to confirm a flood has impacted that area, then will begin the claim payment process. This allows them to payout claims faster than any other type of flood insurance and are even the first insurance company to pay a flood claim within 4 hours of the flood occuring, helping to speed up recovery and reduce stress in a difficult time for businesses.

FloodFlash policies are available in the UK (excluding Northern Ireland) and the US and cover all types of naturally occurring floods including dam and canal overflows or failures. To set up FloodFlash, a user first chooses a location for their sensor. Typically, the best location would be the lowest or most at-risk point on the property, close to doors or windows. Next, they would determine the trigger depth for their policy, and the payout they receive when flooding reaches the trigger depth.

FloodFlash premiums can be significantly lower than standard forms of flood insurance because FloodFlash agrees to a set payout when flood waters reach a specified height which reduces uncertainty and costs. Premiums can be lowered more by investing in flood resilience measures such as flood defences or a flood management plan as clients can choose higher trigger depths. FloodFlash enables businesses who are uninsured or underinsured for flooding to have greater peace of mind that they will be covered during extreme weather events.

Company name

FloodFlash

UK availability

Yes

Date added

Jun, 2024

Case Study

When Oxera Repair Products, a manufacturing company in Mirfield, had a claim in 2015, it took over 7 months and a lot of back and forth with their insurer to be paid. Luckily, cash reserves allowed business to continue in the interim. Oxera chose FloodFlash to complement their flood prevention measures, including flood gates, and chose trigger depths based on their heights to reduce premiums. Looking toward expansion, and with much of their product on the warehouse floor, flood insurance was very important for them. When Storm Ciara hit and their flood gates were breached, Oxera received their FloodFlash payout in less than 24-hours.

£100 +VAT

12 year

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