FloodFlash uses parametric cover to provide pay-outs to policyholders, using IoT sensors to monitor flood levels
Parametric insurance provider FloodFlash has set a new catastrophe claims record during Storm Christoph with the fastest one taking just nine hours and 44 minutes for a full settlement, as reported by sister publication Insurance Times.
FloodFlash co-founder Adam Rimmer said: “During a time of great financial stress for businesses everywhere thanks to covid, getting cash to clients quickly has never been more important. FloodFlash is setting the standard for fast, transparent claim payments.
“We reduce the time it takes to pay a catastrophe claim from months down to hours. In doing so we reduce client uncertainty, claim values and insurer costs. This is the future of insurance.”
Previously the record for fastest property flood claim was 26 hours and 15 minutes, which was set by FloodFlash during Storm Ciara in February 2020.
FloodFlash uses parametric cover to provide pay-outs to policyholders. The insurtech installs an internet-connected sensor that measures flood depths at the insured property which wirelessly sends it to FloodFlash. When flood depths reach the pre-agreed level, it triggers a payout.
The insurer’s Internet of Things (IoT) sensors began to detect floods on Wednesday 20 January, triggering claims across the UK using this method to validate it.
It resulted in clients receiving the money on the same day that their property flooded.
There is no loss adjustment with parametric insurance as FloodFlash claims happen remotely, removing the risk of Covid-19 transmission from the site visits that are required in traditional flood claims.