Lloyd & # 39 ;s of London has partnered with insurance startup Bounce to launch a parametric earthquake insurance policy for commercial customers and homeowners in New Zealand.
The new product uses real-time data from the GeoNet authority to track top speed, triggering payment to policyholders when tremor shakes reach 20 cm per second. The police automatically pay out within five days after the trigger has been broken and payments are increased, with stronger earthquakes resulting in larger payments during protection.
Developed in collaboration with Bounce & # 39 ;s founders – Lloyd & # 39 ;s, Guy Carpenter, Marsh and Jumpstart Insurance – The product is designed to work with traditional earthquake insurance but is aimed at quick payments to policyholders in an immediate aftermath of a tremor.
Lloyds CEO John Neal said: “We are proud to take the step and provide a technologically sophisticated and innovative earthquake insurance product, Bounce, which will provide customers with much-needed support and financial resilience in the immediate aftermath of an earthquake. "
Victoria Carter, President of Global Capital Solutions, International at Guy Carpenter, said:" This groundbreaking coverage has the potential to generate significant societal benefits by providing individuals and communities with funding for all resilience to future earthquake events. It once again demonstrates the groundbreaking approach of Lloyd & # 39 ;s, and Guy Carpenter and Marsh are extremely proud to have played a key role in bringing this new product to market.
Commercial Risk Europe is a sister publication of Business Insurance. More stories from CRE here .