InsurTech Corridor participant FloodFlash, a UK-based parametric insurer, has expanded its business to the US and appointed a CEO to head up its new operation in North America.
In February last year the firm raised US$15m via Series A funding which it said it would use to drive international expansion, launching in Germany, Japan, Australia, and the US. FloodFlash has now appointed Mark Hara as its first North American hire, to head the launch of its new US operation.
FloodFlash combines computer models, cloud software and connected technology to provide flood coverage and uses ‘parametrics’ insurance, using pre-defined parameters such as water levels or the magnitude of a storm, often retrieved from official sources or measured via IoT devices, to deliver a faster payout to customers.
Because it does not use adjusters to measure the real value of the damage caused, it is often seen as a type of ‘bounce back’ insurance rather than completely indemnifying customers.
The potential for FloodFlash’s technology in the US is huge. 2021’s Atlantic hurricane season created around US$70bn in damage and, despite the prevalence of flood risk, fewer than 5% of smaller businesses have flood insurance. It is estimated that total uninsured flood losses arising from this autumn’s Hurricane Ian alone could total US$17bn.
New US CEO Mark Hara, a marketing and insurance expert with experience in managing multi-billion dollar brands such as P&G and Nationwide, also led and successfully exited insurtech startups Mylo and BoldPenguin.
He will be responsible for developing and executing FloodFlash’s US go-to-market strategy, initially launching for the commercial property market in Florida, California, Texas, Louisiana and Virginia. He will begin by appointing a team, and solidifying distribution partnerships with US brokers across the country.
Rory Tanner of Insurtech UK said: “FloodFlash are an exciting business and their technology has real potential to help to protect people from the growing nightmare of flood damage. It’s great news that they are embarking on US expansion with a CEO in place just nine months after raising US$15m in Series A funding.
“There will be multiple opportunities for the North American insurance industry to collaborate with them as they grow their operation in the US and globally, and it’s great to have them on board as part of the InsurTech Corridor program, which is all about nurturing US-UK co-operation.”
Mark Hara said: “FloodFlash insurance will change the flood insurance market in a really positive way, and I can’t wait to grow our US team and forge lasting broker partnerships.”
FloodFlash CEO and co-founder Adam Rimmer added: “Parametric insurance is the best way to help people recover from catastrophic flooding and to do that, FloodFlash needs to operate in the biggest flood market in the world. Mark’s extensive expertise in insurance, insurtech and product marketing give me no doubt that FloodFlash will help millions of American businesses find affordable coverage in the years to come.”