Parametric flood insurance company FloodFlash has announced that it has entered the US insurance market. The UK-based company said it is the first insurance provider to pay catastrophic flood claims in as little as four hours.
In the wake of a devastating hurricane season in the US, policyholders have had to wait weeks or months for their claims to be paid, FloodFlash said. Additionally, many traditional insurers have been hesitant to renew coverage following the devastation of hurricanes Ian and Nicole, contributing to the nation’s $58 billion flood insurance gap – the largest in the world.
“FloodFlash is aiming to augment the flood insurance market in the US by using its parametric technology to make flood insurance available to businesses that can’t get coverage anywhere else,” the company said.
Despite the prevalence of flood risk in the US, less than 5% of small to mid-sized businesses carry flood insurance, FloodFlash said.
Mark Hara, CEO of North America for FloodFlash, will launch coverage in five markets initially – Florida, Virginia, Texas, Louisiana and California. Hara previously held positions with Bold Penguin and Mylo.
“I’m excited to bring this simple, tech-enabled flood insurance to the businesses that need it most,” Hara said. “FloodFlash can provide excess coverage, fill deductibles or cover what other policies do not – providing a coverage option for those with nowhere else to go. It’s a delight to be working with forward-thinking brokers who are dedicated to solving client problems. Together we will help address the flood coverage gap that impacts every single state.”
FloodFlash launched in 2019 and provides parametric flood insurance for businesses of all sizes. Customers choose a depth and payout amount for their policy, and when flooding reaches the depth selected, the insurance pays out – typically within 48 hours. In November, the company paid a claim in just four hours.
Last year, FloodFlash raised $15 million in Series A funding.
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