UK insurtech launches flood alert service in the US | Insurance Business America
UK-based insurtech Previsico has announced the launch of its live flood forecasting alert service in the US. The launch is in partnership with Nexus Alpha USA and aims to mitigate surface water flood losses for insurers and their customers in the US.
Previsico's initial focus will be on New York, which has experienced significant flood issues and losses over the years, including last year when a state of emergency was declared after the state saw record rainfall and flash floods as a result of Tropical Storm Ida. Other states will follow as demand increases, Previsico said.
“Our move into the US market demonstrates our determination to continuously improve and extend our unique flood forecasting service,” said Jonathan Jackson, CEO of Previsico. “Working in partnership with the US insurance market, we will be able to save people, properties, and businesses from the devastating impacts of flooding by mitigating its impact, particularly in the effects of surface water.”
Half of all US economic losses from flooding are the result of pluvial flooding, which occurs when extreme rainfall creates a flood independent of an overflowing body of water. However, current flash flood warnings lack actionable data, as they cover large areas – which generates false alarms and a resultant lack of action, Previsico said.
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“At Nexus Alpha, we work with many innovative businesses,” said Saim Hollis, co-founder and CEO of Nexus Alpha USA. “Uniquely, Previsico's system offers 48-hour forecasts every three hours at specific location levels. As soon as the system identifies a location is at risk of surface water flooding, warnings are sent out. This gives insurers the ability to alert customers of immediate risks to their properties, so they can move valuables to higher ground or set up temporary flood defenses in case of an imminent flood – a win-win for insurers and their customers.”
Previsico was launched in 2019 and supports brokers, insurers Liberty and Zurich, and their clients with live, actionable flood warnings. Working with Lloyd’s, underwriters agreed that Prevsico’s warnings can mitigate 70% or more of commercial loss for businesses with a flood plan and resilience measures.