Floodbase Launches to Automate Flood Insurance Quoting
In a move targeting the insurance industry, Floodbase has launched a platform for automatic, scalable parametric flood insurance quoting. The SaaS tool allows carriers and brokers to instantly quote coverage using real-time data, automating a traditionally slow and manual process.
Floodbase, a Brooklyn-based climate tech startup, was co-founded by CEO Bessie Schwarz and Chief Science Officer Dr. Beth Tellman, who began the project while they were students at Yale. The company has raised a total of $17 million in venture capital, with a recent $5 million investment led by Ecosystem Integrity Fund. This funding is aimed at accelerating the development of their flood insurance programs. The company’s technology combines satellite imagery with artificial intelligence to monitor and analyze flood risk in real-time, a process that has been featured on the cover of the journal *Nature*. This data-driven approach allows Floodbase to offer parametric insurance policies, which pay out a predetermined amount based on a specific trigger event, such as a certain level of rainfall or water depth. This model enables rapid payouts, often within days of a flood event, a significant departure from traditional insurance claims that can take months to resolve. The global parametric insurance market was valued at $16.2 billion in 2024 and is projected to grow to $51.3 billion by 2034. This growth is driven by the increasing frequency of climate-related disasters and the need for faster, more efficient insurance solutions. In the U.S. alone, the parametric market was worth over $5.5 billion in 2024. Traditional flood insurance policies often have limitations and can be difficult to obtain in high-risk areas, leaving a significant protection gap. Parametric insurance helps to fill this gap by covering losses that may not be included in standard policies, such as business interruption or costs beyond property damage. Floodbase has already enabled over 9,000 flood insurance policies across more than 40 countries, partnering with major re/insurers like Swiss Re, Liberty Mutual Re, and AXA Climate. The New York City area has a growing insurtech scene with 277 companies that have collectively raised $6.54 billion in venture capital. Organizations like InsurTech NY provide a hub for startups, investors, and established insurance players to connect and innovate. Floodbase's platform has been used by organizations like the United Nations and FEMA to improve disaster response. For example, the company's technology helped FEMA monitor major hurricanes and map over 500,000 square miles across nine states, closing gaps in existing flood maps. The city of Fremont, California, also relies on Floodbase's technology for its city-wide parametric flood coverage. Beyond insurance, Floodbase's technology has broader applications in climate adaptation and resilience. By providing accurate, real-time flood data, the company aims to help communities and governments better prepare for and respond to the increasing threat of flooding. This aligns with a growing focus on climate tech, an area that is attracting significant venture capital investment.
