By Henry Gale

Feb 26 - (The Insurer) - NormanMax Insurance Holdings has confirmed it has agreed to acquire parametric MGA FloodFlash, as first reported by The Insurer on Monday.

The deal between the parametric insurance specialists remains subject to Financial Conduct Authority approval.

Launched in 2017 by co-founders Adam Rimmer and Ian Bartholomew, FloodFlash provides parametric flood insurance that pays out when the depth of a flood at a client’s location exceeds a predefined threshold, as measured by its on-site sensors.

According to S&P Capital IQ, the company had raised more than $20 million of funding from investors including the venture capital arms of Munich Re and MS&AD.

"This was an easy decision: there are powerful opportunities that come from combining a world-first parametric product with the world’s first parametric Lloyd’s syndicate," said Rimmer, referring to NormanMax's Syndicate 3939.

"The partnership enables our ambitions for FloodFlash to build upon relationships with brokers and customers in the U.S. and UK, to expand rapidly into new territories and perils, and to help more people recover from catastrophe using parametric insurance."

A statement from the companies said FloodFlash would continue to operate as an MGA and Lloyd's coverholder and the FloodFlash product would continue to be available to distributors and customers in the U.S., UK and beyond.

Through its MGA and Lloyd's syndicate, NormanMax underwrites parametric coverage for tropical cyclones and earthquakes, and said last year that it planned to expand its product offering to flood risks.

"Utilising revolutionary technology to provide the best insurance solutions possible is core to our business, and FloodFlash’s sensor technology leads the parametric flood market," said NormanMax CEO Brad Meier.