SUSTAINABILITY
“ The challenge with most insurance , conventional or parametric , is the short-term nature of coverage ”
MARTIN SARJEANT HEAD OF RISK SOLUTIONS AND CLIMATE RISK , FIS
There ’ s notable movement in the insurtech space , which is bringing innovative solutions to the forefront of risk management and insurance . For example , FloodFlash uses Internet of Things ( IoT ) technology to monitor flood incursions in real-time . Their system collects and analyses data to assess flood risk and provides timely advice on actions to minimise potential damage . This approach exemplifies a relatively simple yet highly effective parametric insurance response to a significant problem .
FloodFlash ’ s model involves installing a sensor at the insured property , which triggers an automatic payout when floodwaters reach a predetermined depth . This system bypasses the traditional lengthy claims process , providing quick financial relief to policyholders . According to FloodFlash , the technology can reduce the average claims processing time from months to just hours , significantly benefiting homeowners and businesses alike .
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