Previsico plans US expansion following partnership

UK-based insurtech Previsico is rolling out its live flood forecasting alert service in the US, in partnership with Nexus Alpha USA.

The insurtech started its US expansion in New York, after the city recorded numerous flood-related losses in recent years. To date, Previsico’s services have been live in the city for a couple of months.

In August and September 2021, New York was hit by record rainfall and flash flooding as a result of Hurricane Ida - Central Park obtained 3.15in of rain in just one hour as a result of the tropical storm, according to E&E News.

MarketWatch reported in January 2022 that damages arising from Hurricane Ida amounted to $65bn (£53.2bn).

Previsico told Insurance Times that it will be liaising with insurers to offer its flood forecasting alerts across the US - so far, Liberty Insurance, Zurich and Generali have disclosed their work with the insurtech.

Previsico’s real-time flood forecasting tool uses Internet of Things (IoT) sensors, the latest weather data from IBM’s Weather Company and advanced flood modelling capabilities to predict surface water flooding for insurers.

Jonathan Jackson, Previsico’s chief executive, explained: “Our move into the US market demonstrates our determination to continuously improve and extend our unique flood forecasting service.

“Working in partnership with the US insurance market, we will be able to save people, properties and businesses from the devastating impacts of flooding by mitigating its impact - particularly the effects of surface water.”

Win-win for insurers and customers

Previsico primarily works with insurers operating out of London - these businesses are often providing global propositions, including to the US.

The insurtech’s expansion into this territory is, therefore, driven by client demand and feedback, as its customers look to mitigate flood losses in both the UK and US.

Sam Hollis, co-founder, and chief executive of Nexus Alpha USA, added: “At Nexus Alpha, we work with many innovative businesses.

”Uniquely, Previsico’s system offers 48-hour forecasts every three hours at specific location levels. As soon as the system identifies a location is at risk of surface water flooding, warnings are sent out.

“This gives insurers the ability to alert customers of immediate risks to their properties, so they can move valuables to higher ground or set up temporary flood defences in the case of an imminent flood – a win-win for insurers and their customers.”

• Insurance Times has converted dollar amounts into pounds using an exchange rate of £1 = $1.22, which was correct as of 1 August 2022.