Virginia state funding supports community-based parametric flood insurance pilots

Two parametric insurance initiatives have been awarded grants from Virginia’s Department of Housing and Community Development to strengthen flood resilience in the southwest of the state.

The funding has been awarded by non-profit RISE as part of its Riverine Community Resilience Challenge. The five winners of the challenge, of which two are parametric insurance projects, received up to $375,000 each, with the grants totaling $1.2 million.

Parametric data and technology firms Floodbase and Raincoat received one of the grants. They plan to work with local community leaders to develop flood insurance programs that will trigger immediate payouts to local governments or community organizations when riverine flooding reaches a certain magnitude.

RIC Platform Services, a start-up focused on rainfall-based parametric flood insurance solutions in the U.S., has also received a grant to work on community-based insurance solutions in southwest Virginia.

RIC previously received funding as a winner of RISE’s 2023 flood risk challenge focused on the Hampton Roads area of Virginia and plans to pilot a community-based parametric flood insurance product in Hampton Roads in 2025.

“Hurricane Helene is a powerful and vivid reminder that our riverine communities in southwest Virginia are increasingly vulnerable to catastrophic flood events that can change lives in an instant,” said RISE executive director Paul Robinson.

“As these threats become more severe and frequent, we know the development of new advanced warning systems and community-based insurance programs can make a difference here in Southwest Virginia and, ultimately, vulnerable communities worldwide.”

Emmalina Glinskis, head of public sector partnerships at Floodbase, said: “Without access to capital following a flood event, and facing diminished tax revenue, community recovery can languish as local governments await federal assistance. We are excited to partner with Raincoat and grateful to RISE for their support to develop a community-based flood insurance program that will change the trajectory of relief and recovery for communities in Virginia and beyond.”

Posted by Parametric Insurer