NEW YORK, Feb. 10, 2022 /PRNewswire/ — 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, a leading provider 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.
According to NOAA, inland flooding alone caused over $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 in the US 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. Customers choose a depth and payout amount for their policy. When flooding reaches the depth selected, the insurance pays out, typically within 48 hours.
FloodFlash CEO Adam Rimmer said “This investment is an endorsement of our parametric cover. 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.”
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.