Parametric insurtech firm FloodFlash has completed a series A funding round worth $15 million (£11.06 million) ahead of an international expansion.
Chicago-based Buoyant Ventures led the series A round, with San Francisco-based fund Munich Re Ventures also investing.
Sony Financial Ventures/Global Brain (Tokyo), MS&AD Ventures (San Francisco) and PropTech1 (Berlin) all participated in the round, alongside existing investors Pentech, Local Globe and Insurtech Gateway.
FloodFlash provides parametric insurance policies for flooding, with claims triggered when a pre-selected depth is reached. The insurtech says it pays catastrophic flood claims within 48 hours.
The insurtech plans to use the funding and recently announced new capacity from Munich Reto expand into the US, Germany, Australia, and Japan.
The US is FloodFlash’s biggest target market, where there is a massive protection gap among homeowners and small- and medium-sized businesses, according to the US National Oceanic and Atmospheric Administration.
Commenting on the new investment, Adam Rimmer, chief executive officer at FloodFlash, said: “This investment is an endorsement of our parametric cover and how we’re using it to solve real-world issues. The group of investors for the round couldn’t be better tailored to supporting our efforts in solving the issues around underinsurance in the face of climate change.”
Amy Francetic, partner at series A lead investor Buoyant Ventures, added: “Real solutions are needed to address flood risk in the communities on the front lines of climate change. We are thrilled to lead this first-class syndicate of investors and believe strongly that the FloodFlash team is well positioned for global expansion and success.”
Ben Bergsma, investment principal at Munich Re Ventures, the investment arm of a key FloodFlash partner, said: “Parametric insurance is finally having its moment in insurtech and we believe the FloodFlash approach will appeal to hundreds of thousands of companies in the US and beyond.”
“Successfully writing natural catastrophe parametric insurance is no simple task. FloodFlash’s holistic solution, which includes sophisticated building-level underwriting and monitoring as well as an intuitive cloud platform for brokers and agents, is a game changer for the industry.”