Arthur J. Gallagher has partnered with parametric flood MGA FloodFlash to launch a specialist insurance product for golf courses, targeting a sector that has long faced significant gaps in traditional flood coverage.
The product offers up to US$10 million of flood cover per golf course, with policyholders able to customise trigger depths and payout amounts. When water reaches a pre-agreed depth, the policy will pay out the pre-agreed amount, which can be applied to any flood-related financial loss, including physical damage to the course itself and economic losses such as reduced footfall.
Claims are targeted for approval within 48 hours, with the full process aimed for completion within 28 days, the companies said.
The UK golf sector represents a compelling and largely underserved market for this type of product.
A white paper by Custodian Golf found that of the 1,988 golf courses in England, 117 are at high risk of serious flooding - approximately 6% of the total. The report noted that flooding not only disrupts play but reduces membership renewals, delivering a devastating financial blow to clubs already struggling with rising maintenance and insurance costs. Courses along the east coast face particularly acute exposure, with up to 28% of coastline in England and Wales identified as at risk of erosion, and a significant proportion of the country's courses situated on low-lying ground.
Despite the scale of the sector, a golf club's buildings and equipment may be covered by traditional insurance while the course itself can remain unplayable for months following a flood, leaving operators facing significant uninsured losses.
James Bosley, head of climate strategy, carbon insurance and parametric solutions at Gallagher, said the product fills a critical gap for operators in vulnerable geographies.
"Golf courses are often built nearby water features such as rivers, lakes or on the coast which makes them highly susceptible to flooding," Bosley said. "Whilst traditional insurance is readily available for the clubhouse and associated assets, cover for extreme weather damage to the course is less available and often excludes extreme weather events. The way this product is designed to pay out on pre-agreed parameters means golf course owners can be confident they are protected from the financial risks of flooding and closure."
Meanwhile, FloodFlash CEO John Leckie said the partnership leverages the strengths of both organisations to address a well-documented market gap. "Golf courses often face gaps in coverage when it comes to flood," he said.
According to the Association of British Insurers, insurers paid out a record £585 million in weather-related claims in 2024, with 12 named storms recorded during the 2023–24 storm season. The Environment Agency estimated that the number of properties at risk of flooding could rise from 6.3 million in 2024 to 8 million by 2050.
The commercial lines protection gap is equally pressing. Swiss Re estimated that the UK's natural catastrophe protection gap over the decade from 2015 to 2024 was 22%, meaning roughly one-fifth of total economic losses from natural disasters went uninsured.
The existing Flood Re scheme, which has helped keep residential flood cover affordable does not extend to commercial properties, leaving businesses and leisure operators to navigate the market independently.
The product is explicitly positioned as a complement to traditional cover rather than a substitute, with Gallagher's parametric team working alongside clients to ensure it dovetails with any existing programme. FloodFlash policies are available across the UK, excluding Northern Ireland, and cover all types of naturally occurring floods, including dam and canal overflows or failures. Basis risk is reduced relative to index-based parametric triggers, given that sensors are installed directly at the insured location.
The broader parametric market is also growing rapidly. The sector, valued at approximately $12 billion in gross written premiums, is projected to grow at a compound annual growth rate of 12% through 2030, following a decade of 22% annual growth. Brokers currently hold the largest distribution share in the parametric market, and the Gallagher-FloodFlash product adds a tangible, sellable solution to an otherwise thin toolkit for those advising leisure and hospitality clients with outdoor assets.
FloodFlash, established in 2017 and a Lloyd's coverholder authorised and regulated by the FCA, was acquired by Miami-based parametric re/insurance group NormanMax Insurance Holdings in May 2025.
