Munich Re, MS&AD back parametric flood insurtech FloodFlash

Parametric flood insurance insurtech  FloodFlash has secured Munich Re and MS&AD investment and capacity to fuel international expansion targeting the $58 billion flood protection gap. Target markets include the US, Germany, Australia, and Japan.

FloodFlash has raised $15 million Series A led by Chicago-based Buoyant Ventures with San Francisco-based fund Munich Re Ventures.

Other investors included MS&AD Ventures, Sony Financial Ventures/Global Brain and PropTech1 all, alongside existing investors Pentech, Local Globe and Insurtech Gateway.

The investment comes three months after FloodFlash secured a new insurance capacity partnership with global reinsurer Munich Re.

FloodFlash says the US represents the biggest opportunity. According to NOAA, inland flooding alone caused more than $151 billion 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.

FloodFlash combines computer models, cloud software and connected technology to provide flood cover to the underinsured. When flooding reaches the depth selected, the insurance pays out typically within 48 hours.

FloodFlash chief executive officer Adam Rimmer (pictured) said: “This investment is an endorsement of our parametric cover and how we’re using it to solve real-world issues. The group of investors for the round couldn’t be better tailored to supporting our efforts in solving the issues around underinsurance in the face of climate change.”

Ben Bergsma, investment principal at Munich Re Ventures, commented: “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.”

Amy Francetic, partner at Buoyant Ventures, added: “Real solutions are needed to address flood risk in the communities on the front lines of climate change. We are thrilled to lead this first-class syndicate of investors and believe strongly that the FloodFlash team is well positioned for global expansion and success.”

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