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Custom Flood Insurance Software
In insurance software development since 2012, ScienceSoft delivers robust flood insurance solutions with functionality tailored to each carrier’s business specifics.
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Flood Insurance Software in a Nutshell
Flood insurance software helps carriers streamline their servicing workflows across various flood insurance types, accurately price risks, and leverage innovative flood insurance models.
Such solutions can automate:
- Flood insurance application processing.
- Property-level risk modeling and visualization.
- Calculation of personalized insurance premiums.
- Policy administration.
- Damage evaluation.
- Claim processing and payouts.
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Opportunities You Unlock with Custom Flood Insurance Software
Fully tailored functionality and UI for maximized automation of your unique insurance workflows.
Support for alternative flood insurance models, such as parametric flood insurance and blockchain-based flood insurance.
Advanced security of sensitive data thanks to next-gen cybersecurity mechanisms.
100% compliance of flood insurance operations anywhere in the world with bespoke software built to meet all required global and regional standards.
AI-powered flood risk evaluation, premium optimization, and flood damage assessment to maximize profitability and minimize risks.
Higher ROI and lower TCO in the long run compared to market-available flood insurance solutions. With a custom system, you don’t need to pay subscription fees or continuously invest in the customization of an OOTB platform.
Key Features of Flood Insurance Software
ScienceSoft develops specialized insurtech solutions with unique functionality bound to the needs of each of our customers. Below, our experts share a comprehensive list of the software features commonly requested by our clients from the flood insurance domain.
Support for diverse flood insurance terms
- Coverage for different types of flood: coastal, river, surface.
- Losses covered: property damage or loss (real estate, fleet, cargo), business interruption, increased cost of compliance (for mortgage), etc.
- Diverse insured property types (residential, commercial, condominium, industrial).
- Primary and optional coverage limits.
- Custom policy duration.
- Tailored sets of flood insurance options for different regions.
- Automated capture of digital applications from multiple sources: a customer portal, email, third-party insurance marketplaces, etc.
- OCR-enabled conversion of paper applications to the required digital format.
- AI-supported extraction and validation of data provided by customers.
- Alerts on missing, mismatched, and contradictory data that requires a manual check.
- Rule-based customer pre-qualification against the chosen requirements: location, age, credit rating, etc.
- Automated customer communication (e.g., application progress reports, claim approvals, additional data requests) using AI-based virtual assistants.
- Automated routing of valid applications to actuaries.
Risk evaluation
- Automated aggregation of data on flood-associated loss risk factors:
- Historical flood events, their severity and frequency.
- Average annual loss (AAL) for coastal and inland flood.
- Geospatial data: coastal and riverine topology and flood propagation trajectory, water level dynamics.
- Weather data: precipitation levels, storm surge, etc.
- Climate change data to account for growing flood severity.
- Property location: absolute and relative elevation, distance to water.
- Property characteristics: first floor height, construction material, foundation type, year built, location-specific design and construction codes, and the location of property service equipment (MEP).
- Flood protection measures (availability of levees, sea walls, and property wet floodproofing).
- Flood scenario modeling and what-if analysis to evaluate the flood probability and potential damage exposure for a particular property.
- Trend-based calculation of AAL and exceedance probabilities.
- Quantification of potential flood-induced losses for various customers and customer segments based on the analysis of the collected risk-relevant data.
- Flood scenario visualization using interactive multi-layer maps.
- User-defined rules for automated customer risk scoring and risk-based customer segmentation.
Flood insurance pricing
- Intelligent suggestions on the optimal insurance premiums for particular customers based on the analysis of:
- Historical demand.
- Price elasticity.
- The customer’s risk score.
- Potential claim expenses.
- Flood insurance product profitability.
- Competitors’ prices (including FEMA FIRM prices).
- Regional median income, and more.
- Automated calculation of insurance prices based on user-defined parameters: customer segment, coverage type, insurance limits, deductibles, policy duration, etc.
- Scheduled and ad hoc recalculation of individual premiums for renewed policies based on up-to-date client and risk information.
- Customizable templates for various types of flood insurance policies: personal and business policies, surge flood and pluvial flood policies, etc.
- Policy version control.
- Automated policy generation and submission to customers.
- Automated policy updating with new coverage and premium terms.
- Rule-based policy renewal or cancellation.
- Automated billing for insurance customers.
- Centralized storage for flood insurance policies and invoices.
- Real-time and batch aggregation of omnichannel flood insurance claims and claim-supporting documents.
- Automated claim validation against the flood insurance coverage terms and data available in third-party sources (NFIP flood reports, geospatial data platforms, etc.).
- Automated remote flood damage evaluation using AI, IoT, and computer vision technologies.
- User-defined rules for claim approval or rejection.
- AI-supported claim triaging based on claim urgency, damage extent, financial and reputational risks associated with non-settlement, etc.
- Rule-based calculation of the due compensation amount.
- Automated payment of approved claims.
Parametric flood insurance
- Evaluation and monitoring of flood probability across particular regions based on real-time data: water level, weather conditions, precipitation volume, etc.
- Specialized parametric payout schemes, for example:
- Double-trigger payout schemes (partial payouts for floods of lower severity), e.g., X% of a pre-agreed limit is paid when daily rainfall exceeds 10 mm (first trigger) over five non-consecutive days (second trigger).
- Staggered payout schemes (progressively higher payouts for the floods of increasing severity), e.g., +Y% of a pre-agreed limit is paid for every mm of cumulative precipitation above a predefined threshold.
- Instant payment of compensation amounts to policyholders (triggered by pre-specified events).
- (optional) Parametric flood insurance automation based on the blockchain smart contracts.
- Configurable forms for customer self-registration.
- Managing and updating personal and business information.
- Geography-based KYC/AML verification for new customers.
- Template-based creation of flood insurance applications.
- Paying premiums via a preferred method: bank transfer, card, e-wallet, etc., or via an escrow account with a mortgage lender.
- Filing and submitting claims.
- Tracking the full history of flood insurance activities and transactions.
- Instant messaging between policyholders and flood insurance specialists.
- (optional) A self-service flood insurance price calculator.
- Real-time calculation and monitoring of sales, claim settlement, financial performance, workforce productivity, and other insurance business metrics.
- Configurable dashboards for various flood insurance teams: agents, actuaries, loss adjusters, analysts, etc.
- Automated generation of flood insurance reports: premium reports, loss run reports, etc.
- Scheduled and ad hoc report submission to the required regulators.
- Forecasting of flood insurance demand, revenue, and expenses (by period, product, region, etc.).
Security and compliance features
- Role-based access control.
- Multi-factor authentication.
- Complete audit trail of user activities.
- Data encryption.
- Intelligent fraud detection.
- Compliance with IFRS17, OFAC, CCPA, CPRA, SOC1 and SOC2, FEMA, GDPR and PSD2 (for the EU), NYDFS (for NYC), and other relevant global and local regulations.
- Real-time compliance monitoring.
- (optional) Flood insurance data hashing, timestamping, and recording in the immutable blockchain ledger.