FloodFlash, the parametric insurance technology company that pays catastrophic flood claims within 48 hours, has raised $15m in Series A funding.
The round was led by Chicago-based Buoyant Ventures with San Francisco-based fund Munich Re Ventures also featuring as an investor. Sony Financial Ventures/Global Brain, MS&AD Ventures and PropTech1 all participated in the round alongside existing investors Pentech, Local Globe and Insurtech Gateway.
Since launching in 2019, FloodFlash said it has established a track record for combatting extreme weather losses. Its unique coverage combines computer models, cloud software and connected technology to provide flood cover to those the insurance industry has left behind.
The investment comes three months after FloodFlash announced an insurance capacity partnership with Munich Re. The company plans to use the investment and capacity to fuel international expansion and begin closing the $58bn flood protection gap, as well as target markets include the US, Germany, Australia, and Japan.
The US represents the biggest opportunity for FloodFlash. According to NOAA, inland flooding alone caused more than $151bn in damages across the US in the last 40 years. Despite the prevalence of flood risk in America, only 5% to 15% of homeowners, and fewer than 5% of small to mid-size businesses, carry flood insurance.
Ben Bergsma, investment principal at Munich Re Ventures, said, “Parametric insurance is finally having its moment in InsurTech and we believe the FloodFlash approach will appeal to hundreds of thousands of companies in the US and beyond.
“Successfully writing natural catastrophe parametric insurance is no simple task. FloodFlash’s holistic solution, which includes sophisticated building-level underwriting and monitoring as well as an intuitive cloud platform for brokers and agents, is a game changer for the industry.”
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