Insurtech boss says the partnership will ‘set the standard for how underwriters and insurtechs can work together to address industry issues’
Parametric flood insurance firm FloodFlash has expanded its relationship with Munich Re as the reinsurer today (1 November 2021) announced that it has committed to provide capacity for the insurtech’s principle business.
Initially, Munich Re started working with FloodFlash in autumn 2020, providing capacity for its consultancy service FloodFlash+, which serves large and complex risks.
Today’s announcement means Munich Re will now also back FloodFlash’s main proposition, which delivers flood insurance for SMEs and landlords using a parametric model, facilitated using Internet of Things-based sensors installed at the insured property.
FloodFlash plans to use Munich Re’s investment to undertake international expansion, to offer quotes not only in the UK, but also in other markets with notable flood protection gaps, such as the US, Germany and Australia.
The insurtech will also use the backing to increase cover limits available to UK policyholders and tap into additional underwriting and innovation support.
Speaking on the news, FloodFlash chief executive Adam Rimmer said: “We couldn’t be happier in growing our relationship with Munich Re.
“[It has] a proven track record for supporting innovative products. [Its] pedigree in the parametric insurance space makes us even better suited.
“This partnership will ensure we can move faster and provide more flexible covers to our customers and provide a springboard for international expansion.
“We will set the standard for how underwriters and insurtechs can work together to address industry issues, starting with the $58bn (£42bn) yearly global flood underinsurance problem.”
Stuart Newcombe, active underwriter of the Munich Re Innovation Syndicate, added: “We are really excited to increase the scope of our partnership with FloodFlash.
“I look forward to working together on parametric flood insurance, filling a very significant insurance gap.”