FloodFlash, the UK parametric insurance technology company that pays catastrophic flood claims within 48 hours, announced a Series A capital raise of $15 million.
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 the reinsurer Munich Re. FloodFlash plans to use the investment and capacity to fuel international expansion and begin closing the $58 billion flood protection gap. Target markets include the U.S., Germany, Australia, and Japan.
Since launching in 2019, FloodFlash has established a track record for combatting extreme weather losses, using 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.
According to NOAA, inland flooding alone caused over $151 billion in damages across the U.S. in the last 40 years. Despite the prevalence of flood risk in America, only 5%-15% of homeowners, and fewer than 5% of small to mid-size businesses, carry flood insurance.
“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,” commented FloodFlash CEO Adam Rimmer.
About FloodFlash
London-based FloodFlash is an insurance technology company that combines computer models, cloud software and internet-of-things sensors into flood cover. FloodFlash is a registered coverholder at Lloyd’s of London and is authorized and regulated by the UK Financial Conduct Authority.
Source: FloodFlash
Photograph: A view of a flooded street after the River Ouse burst its banks in the aftermath of Storm Ciara, in York, England, on Monday, Feb. 10, 2020. Photo credit: Danny Lawson/PA via AP.
Topics
InsurTech
Tech
Flood
Funding
Startups
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