What is parametric insurance?
A parametric insurance policy provides cover for a specific event, like flooding. But instead of paying out an amount based on losses incurred, it pays out an amount based on the scale or magnitude of the event.
When it comes to flooding, traditional insurance may leave a flood protection gap because certain perils may be excluded, but if there is a measurable flood event you can apply parametric insurance. It’s a great option as it usually has a quicker settlement than normal business insurance.
FloodFlash – fast, easy and flexible parametric flood insurance
If you’re looking to protect your business from flooding, we highly recommend FloodFlash – a parametric flood insurance solution that is changing the insurance industry and the way businesses like yours recover from flooding.
Whether you struggle to get cover for flood risks and flood events, have a large excess or just want a top-up to your existing policy, FloodFlash might be the solution for you.
Key benefits and features
- Fast
FloodFlash pays out the full value of the settlement within days of confirming a flood, enabling you to recover quickly.
- Easy
FloodFlash claims are easy to administer. Floodflash will just confirm the flood and pay out the agreed amount.
- Flexible
Control your trigger depths and pay-out values, or even make your premium cheaper by raising stock or installing flood defences.
Get a FloodFlash quote today
How FloodFlash works
As soon as flood water reaches a pre-agreed depth, it pays you the agreed value. Here is how a FloodFlash policy works:
Step 1: Select a depth and settlement amount. FloodFlash will give an instant, personalised quote. You can adjust the settlement and trigger depth to make the policy work for you. You can even add multiple triggers so that you are covered for different levels of flooding.
Step 2: A FloodFlash trained installation engineer will visit your property within 14 days to install your internet-connected FloodFlash sensor.
Step 3: Your sensor notifies FloodFlash immediately if the water levels at your property have reached the agreed trigger depth. As soon as that happens, FloodFlash will send you the agreed settlement in full. Use the cash as you wish to assist your flood recovery work with no restrictions.
Why do you need parametric flood insurance?
Finalising traditional insurance claims can prove a slow process, sometimes taking months before claims are resolved following a disaster.
In some cases, businesses can also find it extremely difficult to obtain flood insurance due to previous flood history claims or being in high-risk areas undesirable to insurers. Those businesses that can find cover often end up paying higher premiums or excesses.
Parametric flood insurance can provide an alternative risk transfer solution and is growing within the insurance industry. It can provide reassurance that, not only are you more likely to obtain cover at a reasonable cost, but your claim will be paid fast – often within 48 hours of the flood. Enabling you to recover quickly and get back to what’s important - running your business.
How parametric flood insurance works
Don't be put off by the term 'parametric' – even if it does sound a little complex. It's very straightforward. Fundamentally, parametric insurance covers the probability of a predefined event happening instead of insuring actual loss incurred from a flood.
Whereas a traditional commercial property insurance policy covers you up to the value of the total claim possible under the policy. So, if your property floods, your insurer will assess the loss and pay you the value of damage caused provided it is within your total sum insured value (minus any excesses or application of average).
The difference with parametric insurance is that it doesn’t use the sum insured value. Rather than assessing the value of the claim after a flood, you pre-select the amount you need when taking out the policy. You’re then paid that amount when flooding reaches the depth that you select. It benefits you in that claims often take just a few days from flood to full payout.
Get a FloodFlash quote today
FloodFlash FAQs
Unfortunately, 40% of businesses close for good after suffering a loss from catastrophic flooding and 90% of smaller companies fail within a year, unless they resume operations within five days.1 Finalising insurance claims can prove a slow process, sometimes taking months before claims are resolved following a disaster.
In some cases, businesses can also find it extremely difficult to obtain flood insurance due to previous flood history claims or being in high-risk areas undesirable to insurers. Those businesses that can find cover often end up paying higher premiums or excesses.
FloodFlash insurance can provide reassurance that, not only are you more likely to obtain cover at a reasonable cost, but your claim will be paid fast – often within 48 hours of the flood. Enabling you to recover quickly and get back to what’s important - running your business.
1. FloodFlash 2022 Commercial Report
FloodFlash is a parametric insurance policy that provides cover for a specific event, like flooding. But instead of paying out an amount based on losses incurred, it pays out an amount based on the scale or magnitude of the event, and usually has a quicker settlement than normal business insurance.
In the case of flooding, traditional insurance may leave a flood protection gap because certain perils may be excluded, but if there is a measurable flood event you can apply parametric insurance.