RISE Announces “Flood Insurance of the Future Challenge” Winners
Jeff Dunsavage, Senior Research Analyst, Triple-I (05/02/2023)
Five small insurance-related businesses will each receive up to $300,000 in funding and support to test and advance their flood-risk mitigation products in the Hampton Roads, Va., area as winners of the RISE Flood Insurance of the Future Challenge.
RISE is a Virginia-based nonprofit dedicated to expediting the development of innovative technologies in the resilience sector. Established in 2017 with support of the U.S. Department of Housing and Urban Development and the Virginia Department of Housing and Community Development, RISE has deployed more than $7 million in financial assistance and services to entrepreneurs in the growing coastal resilience sector.
“Flood insurance is a critical tool for building economically and environmentally resilient communities, but the majority of homeowners, renters and businesses are uninsured or underinsured,” said Dr. Paul Robinson, RISE executive director. “These winning ideas represent innovative ways to maintain financial security and stability, and improve access and affordability.”
The winning projects join more than 30 RISE-funded pilots from seven previous challenges. The 2023 winners are:
National Flood Experts, which will pilot a scalable platform to allow municipalities’ floodplain managers and residents to more easily assess costs under FEMA’s new Risk Rating 2.0.
Plover Parametrics, which will structure event-driven insurance products that benefit residents, businesses and municipalities.
reThought Insurance, which will further advance its flood risk assessment and pricing capabilities for properties in the United States to bring flood coverage to more property owners.
Ric Parametric, which will pilot a community-based parametric insurance model of its $14/month, zero-deductible policy, which offers a $10,000 payout within 48 hours based on a triggering event.
True Flood Risk, which will extend its risk-management platform capabilities to produce current and future damage estimates and support insurance applications.
Flood was long considered an untouchable risk for private insurers. For decades, FEMA’s National Flood Insurance Program (NFIP) was practically the only available option. Before NFIP, “mitigation” meant building more dams and providing post-event recovery assistance.
Improved data, analysis, and modeling have helped drive increased private-sector interest in flood-risk transfer and mitigation.