I’m thrilled to sit down with Simon Glairy, a leading expert in insurance technology and risk management, whose insights into the evolving landscape of flood insurance are shaping the future of the industry. With a deep focus on AI-driven risk assessment, Simon has been at the forefront of transforming how insurers approach challenges like flood risk. Today, we’ll dive into the journey of innovative flood insurance solutions, the role of cutting-edge technology in underwriting, the importance of reinsurance partnerships, financial strategies in the insurtech space, and the strategic timing of major milestones like going public.
How did the vision for disrupting the flood insurance market come about, and what were the early motivations behind starting a tech-driven approach in this space?
The flood insurance market has historically been slow to innovate, largely dominated by government programs that often couldn’t keep up with the needs of policyholders. The vision was born out of a desire to bring speed, accuracy, and accessibility to an industry stuck in outdated processes. Back in 2016, the idea was to create a solution in a place like St. Petersburg, Florida—a region prone to flooding—that could leverage technology to rethink how policies are underwritten and delivered. It was about addressing real pain points: delays in getting coverage and a lack of tailored risk assessment. That’s what drove the early push to build something digital-first, something that could make flood insurance more responsive to modern challenges.
What hurdles did you face while expanding flood insurance coverage across diverse regions, and how did you overcome them?
Expanding to cover all 50 states was no small feat. Each region comes with its own set of regulatory requirements, climate risks, and market dynamics. One of the biggest hurdles was adapting to extreme environments, like Alaska, where flood risks differ vastly from, say, Florida. We had to ensure our technology could handle those variations in data and risk modeling. Building a robust network of local partners and agents helped us navigate state-specific challenges, while investing in scalable tech ensured we could standardize processes without losing the nuance needed for each area. It was a balancing act of customization and efficiency, but persistence and strong data analytics got us there.
Can you explain how AI and advanced mapping tools are revolutionizing flood risk assessment in your underwriting processes?
Absolutely. At the core of our approach is a proprietary underwriting engine that uses artificial intelligence to analyze vast amounts of data—think historical flood patterns, weather forecasts, and property-specific details. Combined with advanced mapping tools, we can create highly detailed risk profiles for individual properties, down to the square foot in some cases. This isn’t just about predicting floods; it’s about understanding how water moves, where vulnerabilities lie, and how to price policies accordingly. This granularity allows us to assess risks in ways traditional models never could, making our coverage both more accurate and more competitive.
How does your technology streamline the experience for customers looking to get flood insurance quickly?
Speed is a game-changer in this industry. Our platform is designed to cut through the red tape that often bogs down traditional insurance. By integrating AI and real-time data, we can generate a quote and bind coverage in just minutes, not days or weeks. It’s all about removing friction—whether it’s a homeowner needing protection before a storm or a lender facilitating a closing. The system automates much of the heavy lifting, like risk evaluation and pricing, so customers get a seamless experience without sacrificing precision. It’s been a key reason we’ve built trust with both policyholders and partners.
Reinsurance partnerships seem crucial to scaling in this industry. How did you build such strong relationships with global players?
Trust is everything in reinsurance. We focused on transparency and results from day one. By demonstrating that our technology could deliver consistent, low loss ratios—even during major flood events—we showed reinsurers that we weren’t just another risky startup. We shared detailed data on how our underwriting engine works, proving that our risk selection is sound. Over time, working with over 30 global partners became a testament to that trust. It’s also about communication—keeping them in the loop on our growth plans and showing how their capacity directly fuels our ability to protect more people. That mutual benefit has been the foundation of those relationships.
What does securing significant premium capacity mean for the future of flood insurance solutions, and how does it impact your ability to grow?
Securing $400 million in premium capacity this year is a massive signal of confidence from the market. It means we have the financial backing to write more policies, expand our reach, and take on larger risks without overextending ourselves. Compared to the $300 million we had in 2024, this increase reflects both our proven track record and the growing appetite for tech-driven flood solutions. For the future, it allows us to innovate further—whether that’s enhancing our platform or exploring new markets. It’s a buffer that lets us scale responsibly while continuing to prioritize profitability.
Financially, standing out as a profitable insurtech is rare. What strategies have driven your strong revenue and net income figures?
Achieving $119.3 million in revenue and $34.6 million in net income for 2024 comes down to a few core strategies. First, we’ve been laser-focused on operational efficiency—our tech minimizes overhead costs that plague many insurers. Second, our low loss ratio of 24.7% shows we’re pricing risks correctly and avoiding unnecessary claims exposure, even during major events. Lastly, we’ve prioritized sustainable growth over flashy expansion. Unlike some insurtechs that burn cash chasing scale, we’ve built a model where profitability and customer value go hand in hand. It’s about discipline—every dollar spent has to deliver real impact.
What factors influenced the decision to go public at this particular moment, and how do you see the market responding?
The timing for an IPO is always a complex decision, but right now, there’s a unique alignment of factors. We’ve got strong financials, a scalable model, and a clear track record of growth—all of which resonate with investors looking for stability in the insurtech space. Additionally, there’s growing awareness of flood risk due to climate change, which positions us as a relevant player in a critical market. That said, we’re mindful of economic and political uncertainties that could sway investor sentiment. Still, we believe our profitability and focus on technology set us apart, and we’re optimistic that the market will see the long-term value in what we’re building.
What’s your forecast for the future of tech-driven flood insurance, especially as climate challenges continue to grow?
I think the future of flood insurance lies in deeper integration of technology and data. As climate challenges intensify, we’ll see more demand for solutions that can predict and mitigate risks with pinpoint accuracy. AI and machine learning will play an even bigger role, not just in underwriting but in helping policyholders prepare for events before they happen. I also expect private insurers to take on a larger share of the market as government programs struggle to keep pace. For us, the focus will be on staying ahead of the curve—innovating faster than the risks evolve. If we can do that, I’m confident we’ll see a more resilient insurance landscape emerge over the next decade.
