Image credits: FloodFlash
FloodFlash, a London-based insurtech company that provides parametric flood insurance to the mass market, announced that it has raised a $15M (approx €13.1M) funding in Series A round.
The finance round was led by Buoyant Ventures along with Munich Re Ventures.
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Other investors like Sony Financial Ventures/Global Brain, MS&AD Ventures, and PropTech1 participated in the round with existing investors Pentech, Local Globe, and Insurtech Gateway.
Fund utilisation
The capital injection comes three months after the company announced a new insurance capacity partnership with Munich Re, a provider of reinsurance, primary insurance, and insurance-related risk solutions.
The UK company plans to use the investment to fuel international expansion targetting markets including the US, Germany, Australia, and Japan.
FloodFlash CEO Adam Rimmer says “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.”
What does FloodFlash solve?
Around 80 per cent of the world’s catastrophic flood losses aren’t insured, and that is $58B of uncovered damage. However, the cost is increasing every year due to various factors like climate change, population growth, and urbanisation. With its platform, FloodFlash aims to bridge the $58B flood protection gap.
How does it work?
Founded by Adam Rimmer, and Ian Bartholomew in 2019, FloodFlash is an insurance technology company that combines computer models, cloud software, and internet-of-things sensors into flood cover.
Upon taking insuring, a mobile-connected sensor will be installed at the property. Each customer chooses a depth of flooding and payout amount for their policy.
When the sensor installed at their property detects floodwater at the chosen depth, FloodFlash will kick off the claims process and pay out within 48 hours without any documents.
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.
Headquartered in London, FloodFlash is a registered cover holder at Lloyd’s of London, and is authorised and regulated by the Financial Conduct Authority (FCA).
Investors
Buoyant Ventures is a venture fund that is 100% female-owned and invests in digital solutions to climate change, namely software and hardware.
“Real solutions are needed to address flood risk in the communities on the front lines of climate change,” says 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.”
Munich Re Ventures is the venture capital arm of Munich Re Group. With more than $1B in assets under management, Munich Re Ventures invests in the most innovative startups transforming the future of risk and risk transfer.
“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,” says 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,” he adds.
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