26 Lloyd’s Lab Impact Report 27 NeA Parametric flood cover tackling lum underinsurance Cohort 3, 2019 w pn Lloyd’s relationship with FloodFlash embodies the kind of product innovation that is needed to help businesses thrive in a world of increased ri urbanisation and climate change. The rapid success of this award-winning o c MGA and Lloyd's Lab graduate is living evidence of how Lloyd’s purpose da to support innovation can be used to improve resilience around the world. Through the Lab, Lloyd’s supported FloodFlash as they us built a new type of parametric insurance cover for at-risk locations that uses a smart 昀氀ood sensor ce installed at the insured property. Clients choose trigger depths for their cover and a corresponding payout t amount. When the sensor detects 昀氀ood water at the s a client's chosen depth it sends the data to FloodFlash HQ to automatically initiate a claim. /n The bene昀椀ts of this unique form of parametric insurance are many. Most UK claims can be paid within MG 48 hours, (the fastest ever claim to be paid took just 5 hours and 36 minutes.) This is game-changing for the d catastrophic 昀氀ood insurance market, which is rapidly growing in size because of climate change, and where old-fashioned claims adjustment requires complex p costings for reinstatement of damaged areas, and can often take months, if not years, to settle in full. A Aoi FloodFlash claimant from 2020 summed it up as being “ without question the best insurance claim n experience I’ve ever had, by some distance.” t In partnership with Lloyd’s and backed by capacity from Munich Re, FloodFlash is poised to make a real di昀昀erence to the previously intractable $58bn 昀氀ood underinsurance gap – a number which does not show the 昀椀nancial consequences for businesses of lack of Since graduating from the third cohort of the compensation for 昀氀ooding and slow payment of claims. Lloyd’s Lab, FloodFlash have continued to build out their portfolio of innovation. In 2020 they The product that was developed also included expanded their service to cover larger and more further innovation around the 昀氀exibility of cover. complex risks. Insurance buyers have responded Payment triggers are customised to 昀椀t each individual enthusiastically to this new 昀氀ood mitigation option. property’s own resilience levels and to take account of bene昀椀cial risk management tools, such as raised shelving storage units or 昀氀ood defences. This unique form of parametric insurance thereby rewards resilient clients with more a昀昀ordable premiums. © Lloyd’s