Flood forecasting company Previsico has teamed up with Descartes, a provider of corporate parametric insurance solutions, to enhance corporate flood risk insurance for businesses in the UK and Ireland.
This collaboration aims to deliver precise flood warnings and expedite claims payments through Previsico’s IoT flood sensors, which activate coverage under Descartes’ policies.
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The partnership comes at a critical time as projections indicate that the number of people in the UK significantly at risk of flooding could rise by 61% by 2050 under a 2°C warming scenario, and by 118% at 4°C.
This trend is already impacting the insurance sector, with insurers becoming more cautious and affordable flood insurance is becoming harder to secure, Previsico said.
Previsico IoT systems manager Steven Hayward said: “Today, a third of commercial properties in the UK are at risk from flooding and it is estimated that 40% of small and medium-sized businesses never reopen after they experience losses from a significant flood event.
“Our partnership with Descartes is a game-changer. It will provide businesses with our advanced flood warnings and ensure more organisations can potentially receive parametric insurance payments should the worst occur, enabling them to survive the financial impact of flooding.”
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By GlobalDataPrevisico’s Flood Intel Platform offers flood forecasting and sensor technologies can predict the depth and duration of surface water and ordinary watercourse flooding up to two days in advance for individual risks.
It can also continuously monitor local conditions, including water levels.
Descartes has a capacity to underwrite policies up to $70m, (£56.7m) and offers “unrestricted coverage” for both tangible and intangible losses.
It also allows claims payments within days of a flood event while ensuring financial security and risk-based coverage.
Descartes UK and Ireland underwriting director Alessandro Girelli said: “Working with Previsico, we’re able to manage corporate flood risk in a simple, transparent and speedy way.
“We combine real-time data from Previsico’s sensors and public river gauges to underpin claims payments with a bespoke payout structure increasing with the severity of the flood. The arrangement enables us to support flood risk mitigation, with Previsico’s flood forecasts helping companies take action before floodwaters enter their premises.”
