FloodFlash, a London, UK-based insurtech startup that offers a new way for customers to insure flood risk, raised £1.9m in seed funding.
Backers included LocalGlobe, Pentech Ventures and InsurTech Gateway.
The company intends to use the funds to accelerate its nationwide roll-out.
Co-founded by Adam Rimmer and Ian Bartholomew, FloodFlash has developed a tech-led approach that makes flood insurance available to everyone, including those with the highest flood risk. A FloodFlash policy pays out a pre-agreed, fixed sum as soon as a pre-defined level of flooding occurs. The flood triggers an internet-connected water-sensor and the payment is made immediately to the policy holder. The FloodFlash policy is an example of parametric or “event-based” insurance: settlement is made based on a pre-defined triggering event as opposed to the cost of damages.
The company is regulated by the FCA and is currently carrying out a live pilot for its policies with a select group of SMEs in parts of the UK with significant flood risk, including Carlisle.
Insurance capacity for FloodFlash policies is provided by Everest Re through their syndicate at Lloyd’s of London. The company is becoming a coverholder at Lloyd’s, giving it the ability to underwrite and issue a larger number of policies.
The startup has been working as part of the InsurTech Gateway, the InsurTech focused incubator since mid 2017. The company currently employs five people but expects to double that number over the next six months, as it prepares for product launch in October. The team already includes published scientists, expert insurance software engineers and a former Dyson product designer.