InsurTech FloodFlash, a startup which provides sensor-based parametric flood insurance to ensure rapid payouts, has revealed that it paid claims related to storm Ciara just one day after flooding.
Storm Ciara (also known as European windstorm Sabine) struck Europe over the weekend, with impacts widespread due to the size of the storms footprint.
It’s been described as the “storm of the decade,” and caused widespread chaos and damage as 100mph winds, heavy rainfall and snow hit the UK and parts of Europe.
FloodFlash offers rapid payout insurance for businesses in areas at high risk of flooding, and, has announced that it paid claims related to the storm in record time.
According to FloodFlash, in a world first, it paid claims the day after floods that accompanied storm Ciara over the weekend.
Insurance structured utilising a parametric trigger enables rapid payout post-event as it removes the need for claims adjustment. The insurance contract is triggered when predetermined parameters are met, such as wind speed or amount of rainfall, for example.
With FloodFlash, the customer selects a depth of flooding and a payout, and the InsurTech installs an internet-connected sensor which provides data on flood depths at the insured property. When flood depths reach the predefined threshold, FloodFlash organise the payment.
With storm Ciara, FloodFlash explains that it experienced claims across both Yorkshire and Lancaster, while the average claims for the event was £65,000. The InsurTech notes that sensor readings began alerting FloodFlash of client floods early Sunday afternoon.
Co-founder of FloodFlash, Ian Bartholomew, commented: “Getting claims paid fast has a huge impact on a flooded business. They can start recovering quicker and long-term property damage from factors like mould are more limited. Fast payouts also have a massive impact on the emotional trauma caused by floods. We have proven that parametric cover can provide financial security within days of the event, so our clients aren’t left in the dark waiting for a payout to come through.”
Co-founder Adam Rimmer, added: “We want to set the standard for rapid, transparent payouts within the catastrophe market. Paying out within a day is only beginning. One day we hope to pay clients within minutes of confirming a flood.”
FloodFlash recently announced a new partnership with Gallagher, enabling the global re/insurance broker to provide a parametric flood insurance policy to its UK clients.
Parametric triggers, often utilised in the insurance-linked securities (ILS) space and by international risk pools such as the African Risk Capacity (ARC) and the CCRIF SPC, are growing in both popularity and importance, increasingly being utilised to provide coverage to the world’s poorest and most vulnerable.