52% of UK SMEs based floodplains don’t have flood cover! Insurers struggle to insure flood risk due to the difficulty of modelling and assessing the economic impact. Many people/businesses are unable to get insurance cover at all. Every year, globally, there are $50bn of flood caused economic losses of which only $9bn are covered by insurance.
Into the breach (geddit?) step Floodflash formed by Adam Rimmer and Ian Bartholomew experts in modelling event risks – together with the important fixed-payout insurance concept (doesn’t need much reflection to see how good that could be) this constitutes parametric insurance.
Parametric insurance sounds very techie but in its best known form – life insurance – has been around for centuries.
The market failure above is huge.
On this show we discuss the role of event-based, no-exclusion, instant settlement in addressing this problem. Many people/businesses simply cannot get insurance at present.
Topics discussed on the show include: Continue reading