Why FloodFlash chose the smart sensor
Authored by FloodFlash
Anyone who knows anything about FloodFlash will know that our smart sensor is the key to our rapid claims and affordable premiums. But why did we choose the sensor over satellites or gauges to fuel our award-winning parametric insurance?
Parametric triggers
First, let’s take a step back. Parametric insurance pays out when a specific event or condition is met. A good parametric trigger should be several things – easy and objective to measure, simple and cost-effective to interpret, and, most importantly, closely related to the loss incurred.
The widely used trigger measurement for parametric flood insurance is depth of water, as it scales positively with loss. That’s the case for FloodFlash too – when water hits the pre-agreed depth, we pay out.
Choosing the tech
When we started our journey, solutions typically fell into one of two categories: satellites, and river or tidal gauges. While these have their benefits, they also come with limitations. Satellites give a snapshot of flooding over a wide area, but compromise on both accuracy and reliability of measurements. River and tidal gauges provide accurate and high-frequency measurements, but can be far away from the insured property, introducing basis risk.
BWe wanted to combineest of both worlds
the ability of a satellite to provide data about flooding at any location with the accuracy and reliability of measurements from river and tidal gauges. After a period of prototyping and testing alongside ex-Dyson engineer Pete Codling, the FloodFlash sensor was born.
‘The sensor is much more than just a depth measurement device, it is a lifeline for business survival’ Dr Ian Bartholomew, FloodFlash co-founder and CUO
FloodFlash sensors are low-cost, send us depth data in near real-time, and measure flooding at the client’s property, reducing basis risk. It not only measures water depth, but acts as our super-efficient claims department, helping us pay clients fast. Our fastest claim? Just 3 hours and 50 minutes between water reaching the client’s trigger depth and the money landing in their bank account.
If you want to learn more about our sensor works, check out this article. If you have any questions, email enquiries@floodflash.com.
About FloodFlash
FloodFlash is a new type of rapid-payout flood insurance. It uses the latest data modelling and connected tech to bring parametric insurance to the mass market for the first time. The result is fast, easy and flexible cover that pays claims within days of a flood.
FloodFlash is parametric or `event-based` insurance. When buying the cover, the client chooses the depth of flooding they wish to insure against and how much they’d receive when that flood happens. When the FloodFlash sensor installed at the property detects flood water at the selected depth, the claim is paid in full. No waiting. No haggling.
FloodFlash rapid-payouts were put to the test in February 2020 when Storm Ciara swept across the UK. Claims related to the storm were paid in full within a single day. That speed of claims payment remains the fastest and best proof of mass-market parametric insurance to date gaining acclaim at industry awards and recognition from The Times, The Telegraph and the BBC.
FloodFlash operates across Britain, is headquartered in London. Floodflash is a registered coverholder at Lloyd`s of London and is authorised and regulated by the Financial Conduct Authority.