Gallagher partners with MGA over parametric golf course flood protection

Gallagher has partnered with flood insurance MGA FloodFlash to launch a new parametric golf course product.

FloodFlash – which is owned by parametric specialist insurance group NormanMax – uses proprietary flood depth sensors to offer policies that pay out when a predefined flood depth is reached at a policyholder’s property.

Gallagher said the product will offer up to $10m (£7.4m) of coverage per golf course, with payouts aimed to be approved within 48 hours of a qualifying flood incident and the full claims process completed within 28 days.

John Leckie, chief executive at FloodFlash explained that golf courses “often face gaps in coverage when it comes to flood” and that parametric protection can “fit alongside existing coverage to provide a solution tailored to the client that gives them reassurance in the event of a flood”.

Extreme weather damage

James Bosley, head of climate strategy, carbon insurance and parametric solutions at Gallagher, said: “Our new parametric golf course product provides clients with easy to access insurance to protect them from extreme weather, which is a major problem for golf courses in certain geographies.

“Golf courses are often built nearby water features such as rivers, lakes or on the coast which makes then highly susceptible to flooding.”

He continued: ”Clearly the course itself is the most valuable asset for the business, as without it customers cannot use the facility, and whilst traditional insurance is readily available for the clubhouse and associated assets, cover for extreme weather damage to the course is less available and often excludes extreme weather events.

“The way this product is designed to pay out on pre-agreed parameters means golf course owners can be confident they are protected from the financial risks of flooding and closure.”