Parametric insurtech firm FloodFlash has secured $15 million in a Series A round of funding that was led by Chicago-based Buoyant Ventures with Munich Re Ventures also featuring as an investor.
Sony Financial Ventures/Global Brain, MS&AD Ventures and PropTech1 all participated in the round alongside existing investors Pentech, Local Globe and Insurtech Gateway.
The investment comes three months after FloodFlash announced a new insurance capacity partnership with Munich Re.
FloodFlash plans to use the investment and capacity to fuel international expansion, with target markets including the US, Germany, Australia, and Japan.
The insurtech views the large flood protection gap in the US market as the biggest opportunity for expansion, having already made significant inroads in the UK.
“This investment is an endorsement of our parametric cover and how we’re using it to solve real-world issues,” said FloodFlash CEO Adam Rimmer.
“The group of investors for the round couldn’t be better tailored to supporting our efforts in solving the issues around underinsurance in the face of climate change.”
“Parametric insurance is finally having its moment in insurtech and we believe the FloodFlash approach will appeal to hundreds of thousands of companies in the US and beyond,” added Ben Bergsma, Investment Principal at Munich Re Ventures.
“Successfully writing natural catastrophe parametric insurance is no simple task. FloodFlash’s holistic solution, which includes sophisticated building-level underwriting and monitoring as well as an intuitive cloud platform for brokers and agents, is a game changer for the industry.”
Amy Francetic, partner at Buoyant Ventures, also commented: “Real solutions are needed to address flood risk in the communities on the front lines of climate change. We are thrilled to lead this first-class syndicate of investors and believe strongly that the FloodFlash team is well positioned for global expansion and success.”