Winter claims for catastrophe InsurTech show how fast parametric payouts can be
London, UK (Feb. 10, 2020) – FloodFlash, a UK InsurTech startup offering rapid-payout insurance for businesses in areas at high risk of flooding, has paid claims related to Storm Ciara in record time. In a world first, the parametric insurer that focuses on commercial clients paid claims the day after floods that accompanied winter storm Ciara over the weekend.
Dubbed the “storm of the decade”, Ciara caused chaos as 100mph winds, heavy rain and snow battered the UK. According to the Environment Agency, nearly three quarters of February’s rain fell in just 24 hours in Cumbria. Some business owners were relieved to find that their insurance claims were already underway before the waters had started to recede.
FloodFlash uses parametric cover to provide payouts. This new approach doesn’t rely on claims adjustment. Instead, the client selects a depth of flooding and a payout, FloodFlash install an internet-connected sensor which provides data on flood depths at the insured property. When flood depths reach the pre-agreed amount, FloodFlash organise the payment.
“Getting claims paid fast has a huge impact on a flooded business,” said FloodFlash co-founder Ian Bartholomew. “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.”
“We want to set the standard for rapid, transparent payouts within the catastrophe market,” added Co-founder Adam Rimmer. “Paying out within a day is only beginning. One day we hope to pay clients within minutes of confirming a flood.”
FloodFlash is a new type of rapid-payout flood insurance. They use the latest in data modelling and connected technology to provide fast, easy and flexible cover. FloodFlash is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority.
SOURCE: FloodFlash Ltd.Tags: claims, flood, FloodFlash, industry first, InsurTech, Natural Catastrophes, parametric insurance, payment, severe weather, startup, storm surge damage