Parametric flood cover is taking off among Australian businesses such as manufacturers and may become available for residential strata properties, according to Epsilon Underwriting.

Epsilon has been offering parametric cover based on technology from UK-based FloodFlash to businesses this year.

“We’re only just getting the word out. It’s very early days, but our strike rate is definitely in the double digits,” chief underwriting officer Paul O’Leary told insuranceNEWS.com.au.

Epsilon says most Australian properties and assets are under or uninsured for flash flooding.

With FloodFlash’s smart sensor technology, fast and flexible coverage can be tailored to meet each insured’s business model and risk appetite.

“This is where a parametric policy with optional flash flooding cover becomes such a critical part of an overall insurance program brokers can now recommend to their clients,” the underwriting agency said.

FloodFlash reports flood depth at the insured property and, if triggered, claims are settled quickly. The product is backed by Lloyd’s underwriters.

Epsilon says the cover suits manufacturers with hard-to-move equipment, for example, and may help construction sites that can struggle to achieve suitable flood cover.

Mr O’Leary expects it will also prove to be a “breakthrough” for strata properties, where valuable shared services can be damaged by floods.