Funding to capitalize international growth as company targets $58bn flood underinsurance problem
London, UK (Feb. 10, 2022) – FloodFlash, the parametric insurance technology company that pays catastrophic flood claims within 48 hours, today announced a Series A raise of $15m. The round was led by Chicago-based Buoyant Ventures with San Francisco-based fund Munich Re Ventures also featuring as an investor. Sony Financial Ventures/Global Brain (Tokyo), MS&AD Ventures (San Francisco) and PropTech1 (Berlin) 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, one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. FloodFlash plans to use the investment and capacity to fuel international expansion and begin closing the $58bn flood protection gap. Target markets include the US, Germany, Australia, and Japan.
The US represents the biggest opportunity. According to NOAA, inland flooding alone caused more than $151bn in damages across the US in the last 40 years. Despite the prevalence of flood risk in America, only 5% to 15% of homeowners, and fewer than 5% of small to mid-size businesses, carry flood insurance . This represents a massive opportunity for FloodFlash, who have already made an impact on the UK flood underinsurance problem.
Since launching in 2019, FloodFlash has established a track record for combatting extreme weather losses. Their unique coverage combines computer models, cloud software and connected technology to provide flood cover to those the insurance industry has left behind.
Aside from broader availability, a key advantage to the coverage is how simple it is. Customers choose a depth and payout amount for their policy. When flooding reaches the depth selected, the insurance pays out, typically within 48 hours. During Storm Christoph in January 2021 FloodFlash paid a client in full 9 hours and 44 minutes, setting a record for catastrophic flood claim payment.
FloodFlash CEO Adam Rimmer said “This investment is an endorsement of our parametric cover and how we’re using it to solve real-world issues. 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.”
“Real solutions are needed to address flood risk in the communities on the front lines of climate change,” said Amy Francetic, partner, Buoyant Ventures. “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.”
“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,” said 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.”
80% of the world’s catastrophic flood losses aren’t insured. That’s $58bn of uncovered damage, and it’s getting bigger each year because of climate change, population growth and urbanization. FloodFlash is an insurance technology company that combines computer models, cloud software and internet-of-things sensors into flood cover that protects those the insurance industry has left behind. FloodFlash is headquartered in London, is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority.
About Buoyant Ventures
Buoyant Ventures is a venture fund that is 100% female-owned and that invests in digital solutions to climate change, namely software and hardware. With offices in Chicago and Denver, the firm invests in climate change mitigation and adaptation solutions poised to address the speed and scale necessary to combat climate change today.
About Munich Re Ventures
Munich Re Ventures is the venture capital arm of Munich Re Group, one of the world’s leading providers of reinsurance, primary insurance, and insurance-related risk solutions. With more than $1 billion in assets under management, Munich Re Ventures invests in the most innovative start-ups transforming the future of risk and risk transfer. MRV’s experienced investors are financially-driven while focused on the strategic interests of Munich Re and the broader insurance industry. MRV works closely with Munich Re Group businesses across the globe to fund and partner with the best emerging companies developing new technologies and business models – and risks – for tomorrow’s world.
SOURCE: FloodFlash Ltd.Tags: FloodFlash, Munich Re, parametric insurance, seed funding