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NormanMax Insurance Holdings, the US based parametric insurance and reinsurance group that operates the first pure-parametric syndicate at Lloyd’s, has added to its sensor-based technology for parametric risk transfer with the acquisition of the UK’s FloodFlash.
FloodFlash is a flood risk focused insurtech that offers an innovative sensor-based approach to parametric flood insurance using its own sensor-based technology which are installed in homes and businesses to provide a measurement source for data that can be used in a parametric insurance trigger.
These internet connected sensors can be installed in any location to provide a real-time measurement of flood waters, so furnishing measurement and settlement data for parametric insurance, reinsurance and risk transfer contracts.
This allows for very simple and understandable triggers for risk transfer buyers, such as if flood waters reach X depth payout will be Y.
NormanMax has access to sensor based technology for parametric hurricane and wind contracts in the United States, for which it utilises the WeatherFlow network of connected anemometers.
So an acquisition of FloodFlash, which we understand to be mainly about the technology, seems a good fit to expand NormanMax’s technology focused parametric underwriting activities.
FloodFlash said that it has agreed terms to be acquired by NormanMax Insurance Holdings, Inc., subject to FCA approval.
The company said that it will continue to operate as an MGA and Lloyd’s coverholder, while its product will continue to be available to distributors and customers in the US, UK and elsewhere.
Adam Rimmer, CEO and co-founder of FloodFlash, commented, “I am very pleased to share the news of the acquisition of FloodFlash by NormanMax and can’t wait to work closely with Brad and the NormanMax team. This was an easy decision: there are powerful opportunities that come from combining a world-first parametric product with the world’s first parametric Lloyd’s syndicate. The partnership enables our ambitions for FloodFlash to build upon relationships with brokers and customers in the US and UK, to expand rapidly into new territories and perils, and to help more people recover from catastrophe using parametric insurance.”
Brad Meier, CEO of NormanMax, added, “NormanMax is delighted to have agreed terms to acquire FloodFlash. Utilising revolutionary technology to provide the best insurance solutions possible is core to our business, and FloodFlash’s sensor technology leads the parametric flood market. We are excited to expand our offering to protect customers from one of the most prevalent natural catastrophes in the world and l look forward to working with Adam, Ian and the FloodFlash team.”
We understand from sources that FloodFlash had been hit by a relatively high-level of claims in recent months due to repeated flood events in the United Kingdom, with its sensor technology responding to provide rapid payouts to its clients.
Sensors are an important part of the parametric risk transfer delivery stack now and we’ve been writing about their importance for well-over a decade.
Having accurate, real-time access to data of on the ground conditions allows for close calibration of triggers for very specific and localised risks, while a wide-area approach of sensor installs allows for interesting triggers to be constructed that can serve larger clients, as well as reinsurance and retrocession needs.
Bringing together sensor technology from wind speed anemometers with flood depth measurements could be a compelling way to sell a parametric product covering hurricanes and storm surges in the United States. It will be interesting to see how NormanMax takes the FloodFlash technology forwards.
NormanMax gets more parametric sensor tech with FloodFlash acquisition was published by: www.Artemis.bm
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