FloodFlash Revolutionizes Flood Insurance with Innovative Sensor Technology in the U.S.

FloodFlash, a Managing General Agent (MGA) specializing in parametric flood insurance, is making significant strides in the U.S. insurance market. Richard Coyle, the U.S. commercial director, discusses the company’s unique approach and rapid expansion since its 2023 U.S. launch. Central to FloodFlash’s model is its sensor-based technology, which provides a more direct and accurate assessment of flood risks than traditional methods like river and tidal gauges or satellites. This technology places sensors directly on insured buildings, ensuring a tight correlation between flood events and policy triggers.

Coyle highlights the genesis of FloodFlash, founded by Adam Rimmer and Ian Bartholomew, who were inspired by their work in catastrophic bond structuring post-Hurricane Sandy. The company initially proved its model in the UK, where its first major test came with a storm in February 2019. Since then, they have reduced claim times to mere hours in some cases.

In the U.S., FloodFlash’s impact is already significant, with a broad sector-agnostic approach that includes commercial real estate, manufacturing, arts, recreation, and public entities. They currently operate in 15 states with no minimum premium, with tailored policies available in others, including challenging locations like Hawaii and Alaska.

Coyle also emphasizes FloodFlash’s role in addressing the substantial protection gap in flood insurance, especially for businesses with high flood risk. By focusing on challenging areas where traditional markets are hesitant to tread, FloodFlash is filling a vital gap in the market. The company sees itself as a competitor to traditional flood insurance, leveraging its unique technology to underwrite risks more efficiently.