Floods present a plain challenge to insurers
Bulleen , Australia
An aerial view of recent flooding in Victoria , Australia . Climate change means freak weather events like these are becoming commonplace . Increasingly , insurtechs are utilising open-source data and IoT-enabled devices to measure flood levels or other weather-related parameters , allowing almost instant payout when a pre-agreed condition is met .
It ’ s a well-known practice called ‘ parametric insurance ’, and it ’ s often considered a type of ‘ bounce back ’ insurance because it prioritises speed of payment over full indemnification of incurred losses . Find out how the insurance sector is using parametrics in our article on ‘ Managing a Climate in Crisis ’. insurtechdigital . com 11