Floodbase raises $5 million to grow parametric flood coverage

By Henry Gale

Feb 24 - (The Insurer) - Flood data company and parametric insurance specialist Floodbase has announced a $5 million investment.

The round was led by Ecosystem Integrity Fund (EIF), with participation from Pulse Fund, and brings Floodbase's total funding raised to $17 million.

The company plans to use the funding to accelerate the development of its parametric flood insurance programs.

Floodbase says it has enabled more than 9,000 flood insurance policies since its Series A funding round in January 2023, through partnerships with (re)insurers including Swiss Re Corporate Solutions, Liberty Mutual Re and Axa Climate.

Co-founder and CEO Bessie Schwarz said that flood insurance is typically limited to covering direct property damage, while parametric solutions can provide fast payouts for any economic loss associated with flooding.

"With the growing demand for new flood insurance programs, we are thrilled to partner with EIF to accelerate our growth," Schwarz said. "With their support, we'll continue to lead and empower the market to close the global flood protection gap."

Floodbase specialises in parametric policies that pay out based on the magnitude of flooding over a large area. It monitors flood extent using a variety of data sources including satellite imagery and river gauges.

The company announced a partnership with Aon and Swiss Re Corporate Solutions to launch a parametric solution for U.S. storm surge risks earlier this month.

In a statement announcing the release, Floodbase said that it was defying the trend of "persistent underfunding of women-led startups". According to PitchBook, only 2% of venture capital went to companies founded by women in 2023, which dropped to 1.9% in early 2024.