Deal set to fuel UK and international growth for parametric insurtech
[LONDON, NOV 2021] FloodFlash, the first insurtech startup to offer parametric flood insurance to the mass market, announced a landmark agreement with Munich Re today.
The relationship between FloodFlash and Munich Re began with Munich Re providing capacity for FloodFlash consultancy service FloodFlash+ which serves large and complex risks. Munich Re have now assumed the lead role in providing capacity for the principle FloodFlash business that provides rapid-payout flood cover for SMEs and landlords.
The new partnership provides a platform for international expansion as well as increasing the cover limits available to the insurtech in the UK. It will give FloodFlash access to advanced underwriting and innovation support. FloodFlash now hopes to provide more quotes across the UK and fuel international growth in other markets with notable flood protection gaps such as the US, Germany and Australia.
According to NOAA, inland flooding caused more than $151 billion 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 impression on the UK protection gap.
Beyond simply providing cover, FloodFlash recently set new records for the fastest property flood claim during Storm Christoph in January 2021. They paid one client in full just 9 hours and 44 minutes after flooding, with most clients paid within 48 hours, providing a lifeline to businesses that have been rocked by months of insecurity caused by COVID disruption.
FloodFlash CEO Adam Rimmer comments: “We couldn’t be happier in growing our relationship with Munich Re. They have a proven track record for supporting innovative products. Their pedigree in the parametric insurance space makes us even better suited.”
“This partnership will ensure we can move faster and provide more flexible covers to our customers and provide a springboard for international expansion. We will set the standard for how underwriters and insurtechs can work together to address industry issues, starting with the $58bn yearly global flood underinsurance problem.”
Stuart Newcombe, Active Underwriter of the Munich Re Innovation Syndicate comments: “We are really excited to increase the scope of our partnership with FloodFlash. I look forward to working together on parametric flood insurance, filling a very significant insurance gap.”
FloodFlash is a multi-award-winning insurtech at the forefront of parametric innovation. Launched in 2019, their rapid-payout flood product provides cover to UK SMEs and landlords that struggle to secure flood terms anywhere else. They use the latest in data modelling and connected technology to provide fast, easy and flexible cover. FloodFlash is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority.
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.