FloodFlash smart quote solves big parametric challenge
FloodFlash, the parametric insurance technology company, has announced the biggest update to their broker platform since launching in 2019. The new feature, known as ‘smart quote’, brings a wealth of insights to help brokers and the clients select the right cover.
Parametric insurance has shown huge growth in the past few years. It is widely praised for having simple policies, flexible cover design and fast claim payout. To make use of these benefits, each client selects a payout amount for their policy, and a trigger depth. When flooding reaches a selected trigger depth, they are paid the full claim value – typically within 48 hours.
Giving clients the opportunity to choose trigger depths and payout amounts does make for flexible cover. However, it can be difficult for some clients to make those choices, particularly if they haven’t flooded before. FloodFlash carried out extensive research and prototyping to address the issue. The solution they developed is smart quote.
Smart quote takes the inputs that brokers submit on behalf of their clients and produces a tailored quote. Each quote includes trigger depths and payout values based on the characteristics of the client’s property and business, as well as insights on how the portal arrived at those values. It takes into account many inputs, including occupancy type, square footage, building materials and more.
The new feature is designed to help clients, although it doesn’t provide the answer. FloodFlash encourages clients to view the smart quote objectively and use the insights provided to tweak the policy to their needs. Henry Bellwood, one of the FloodFlash team who developed the system explains, “Brokers and their clients will always know more about their property than any model could. Smart quote uses the science behind the models to give brokers a head-start in their efforts to get the best cover for their clients.”
FloodFlash CEO Adam Rimmer (pictured) commented on the launch, “The FloodFlash Smart Quote system is a paradigm shift in mass-market parametric insurance. It makes insurance payouts correlate closer with the losses that clients experience than has ever been possible. This is vital because the quality of parametric insurance is defined by how well payments and losses match up. With smart quote, FloodFlash will help even more people to recover from catastrophe.”
FloodFlash Chief Scientist Dr Ian Bartholomew added, “I couldn’t be prouder of the team that brought the smart quote feature to life. Over time machine-learning and AI capabilities will help smart quote learn about real business needs and translate that into more accurate calculations for brokers and their clients. This is only the beginning.”