Insurance broker Gallagher has teamed up with insurtech start-up FloodFlash to offer its innovative sensor-based parametric flood insurance product to commercial clients of the firm.
The agreement between the two will help FloodFlash to expand the uptake of its sensor driven parametric flood insurance solution, while bringing flood coverage that may not have been readily available to Gallagher’s commercial clients.
FloodFlash launched last year and its product utilises sensors developed by the insurtech startup.
A sensor is installed in covered homes or businesses to provide a highly localised measurement source for data that can be used in the parametric trigger for the flood insurance coverage.
As a result, the basis risk associated with a FloodFlash policy is significantly lower, given the location of the data source for the trigger being directly within or attached to the property that is covered.
FloodFlash has already issued millions of pounds worth of parametric insurance cover for commercial property across the UK, the company said.
It expects the relationship with Gallagher will drive further uptake, as a new source of distribution for the company and its parametric risk transfer product.
Gallagher is one of the first brokers to offer FloodFlash to its clients, the company further explained.
The parametric and sensor-derived trigger approach to flood insurance can help companies get covered when they may not have been able to obtain insurance flood insurance before.
FloodFlash co-founder Adam Rimmer commented, “Thousands of organisations across the UK are open to devastating costs from floods. We’re proud to partner with Gallagher and bring rapid-payout insurance to businesses and landlords across the UK.
“The adoption of new insurtech products like FloodFlash shows Gallagher’s commitment to bringing innovative cover options to its customers. With this partnership we are better placed to provide cover to the people that need it most.”
James Murray, Branch Director, Leeds, Gallagher, added, “With the increasingly unpredictable weather, many UK businesses are likely to find themselves increasingly exposed to the risk of flooding. The good news is that there are solutions to help, even for difficult to insure businesses.
“Through our partnership with FloodFlash, we can offer our clients an innovative, technology-led solution, helping organisations obtain flood insurance in high risk areas.”