Flood risk insurtech company FloodFlash, which offers an innovative sensor-based approach to support parametric flood insurance triggers, has beaten its own record on rapid claims payment, paying out to one policyholder within ten hours for the impacts of flooding during UK storm Christoph.
FloodFlash highlighted its new catastrophe claims payout record today, saying that the fastest claim took just 9 hours and 44 minutes from the property flooding to the policyholder receiving the full settlement in their account.
FloodFlash’s sensors began to detect flooding on Wednesday 20th January, triggering claims across the country.
FloodFlash validated the claims rapidly, using data provided by the sensors, and paid them soon after, with claims payments automated and no on-site assessment required.
In many cases clients received the money on the same day that their property flooded, which FloodFlash notes is a world first in catastrophe insurance.
The benefits of this new approach aren’t limited to fast claims. There is no loss adjustment with parametric insurance. FloodFlash claims happen remotely, removing the risk of COVID transmission from the site visits that are required for traditional flood claims.
The new record smashes the previous one, which was 26 hours and 15 minutes set by FloodFlash during Storm Ciara in February 2020.
FloodFlash Co-founder Adam Rimmer commented, “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.”
Storm Christoph was the third named storm of the year in the United Kingdom and more than 350 live flood alerts were issued during the peak of the storm. PwC estimated that insurance market losses from the flooding will range between £80m – £120m.
As we’ve said before, rapid payouts from parametric insurance linked to sensors is just one promise of more efficient risk transfer for customers that we’re beginning to see become a reality.
To-date, there still aren’t that many examples, but as sensors become ubiquitous in properties and other situations, we expect to see a raft of new parametric insurance products emerge with rapid response times.