JBA partners with insurtech FloodFlash on first parametric flood policy
JBA Risk Management has partnered with insurtech start-up FloodFlash to launch an innovative parametric flood policy for individual property and business owners.
Parametric insurance reduces the uncertainty in translating flood depth into financial loss by paying property owners a fixed amount as soon as flood water reaches a pre-agreed depth, subsequently reducing premiums.
The new product has been designed by applying risk transfer approaches that are more commonly seen in large-scale transactions such as catastrophe bonds at property level for the first time.
It will provide bespoke insurance for policyholders in frequently flooded areas who have traditionally struggled to obtain cover.
FloodFlash, which aims to offer insurance for previously uninsurable flood risk, currently operates in the UK with plans to expand globally using JBA’s global flood data. The start-up raised £1.9 million in its seed funding in August last year, as well as backing from Everest Re.
Jane Toothill, director at JBA, said: "FloodFlash’s micro-scale application of parametric insurance at property level is unique and exciting. It demands extremely high-quality underlying data and we’re proud to be able to provide this so as to support FloodFlash’s initiative."
Ian Bartholomew from FloodFlash added: "No business should fail due to flooding. When we noticed that businesses in Britain were unable to get adequate cover we decided to act. We combine technology and data to provide resilience to the businesses that need it most. JBA’s global flood maps and analytics are essential tools for us in developing FloodFlash and providing the right cover to those clients. The JBA UK Flood Map is the best in the market and, with their ability to work flexibly, JBA’s specialist team are always on hand to offer technical support and guidance."
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