Parametric insurance pays within days after a Hurricane

Map of Florida showing wind data and storm paths, with a red circle around the southwestern coast near Fort Myers, and wind intensity scale indicating different wind speeds.

HURRICANE
RAPID RECOVERY INSURANCE

The parametric Hurricane Rapid Recovery Insurance (HRRI) provides loss payments to policy holders after a devastating storm to secure livelihood or keep businesses running within days.

The loss payment is defined by the maximum hurricane category of the hurricane path intersecting the Insured Location. The Insured Location is one or multiple circles with a radius in miles around the Insured Address.

In the trigger event, based on the data from the National Hurricane Center (NHC), the loss payment is wired
to the policyholder’s bank account within days.

KEY SELLING POINTS

°  No proof of physical loss to your property

°  No proof of loss to Business Income

°  Wire transfer of loss payment within days directly to the Insured

°  Loss trigger based on data from the National Hurricane Center (NHC)

°  Transparent product administrated through best-in-class platform solution

°  Backed by reputable reinsurer

HRRI PRODUCT

The product is designed as parametric insurance where the Insured Location is a circle with a defined radius around the Insured Address.

The Insured receives a payout within days when a hurricane intersects the Insured Location in a relevant category.

The HRRI Event Coverage Table describes the payout amount per Hurricane Category intersecting with the Insured Location. There may be multiple payouts during the Policy Period, however the maximum payout is capped at the Sum Insured.

HRRI EVENT COVERAGE TABLE

If the path of a Hurricane intersects the Insured Location, loss payments are due based on the Event Coverage Table.

Table displaying hurricane categories and their indemnity in percentage of policy limit. Categories 1 and 2 have no indemnity, Category 3 has 20%, Category 4 has 40%, and Category 5 has 100%.

HOW IS IT MEASURED

The National Hurricane Center (NHC) provides 6 hourly and landfall measurement points for each Hurricane track. The measurement point information includes: windspeed, storm category, geolocation, and time.

The relevant hurricane category for the insurance is the highest value of:

a)  The last measurement point before the track

intersects the Insured Location

b) Any measurement point within the Insured

Location

c)  The first measurement point after the track has

left the Insured Location

Map of southern Florida showing the path of a hurricane, with labels pointing to different regions. Area a is labeled Homestead, area b is labeled Fort Lauderdale, and area c is labeled West Palm Beach.

PAYOUT EXAMPLES

HRRI POLICY TERMS EXAMPLE

A table displaying insurance policy details related to hurricane event coverage, including insured address, event, eligible event criteria, relevant categories, raw data frequency, data provider, and policy limit.

Scenario 1

A shop owner in Panama City FL purchased a HRRI for the storm season 2019 with a Policy Limit of $1,000,000. The Insured Location is a circle with 40 miles radius with the shop location as the Insured Address‘.

A map showing the Gulf of Mexico, with a hurricane tracking circle near Panama City, Florida. A pop-up displays weather data for Hurricane Michael, including wind speed of 135 knots, category 4, on October 10, 2018. The map includes various cities and a wind intensity scale with color-coded dots.

Hurricane Michael intersected the Insured Location as a Category 5 Storm. The owner received $1,000,000 payout.

Scenario 2

A boat rental company in Port Aransas TX purchased a HRRI for the storm season 2017 with a Policy Limit of $500,000. The Insured Location is a circle with a 40 miles radius around the harbor.

Map showing hurricane Harvey near Corpus Christi, Texas, with wind speed of 115 knots, category 4, on August 26, 2017.

Hurricane Harvey intersected the Insured Location as a Category 4 storm. The boat rental company received a $200,000 payout.

Scenario 3

A hotel in New Oreleans purchased a HRRI for the storm season 2005 with a Policy Limit of $500,000. The Insured Location is a circle with a 40 miles radius around the hotel.

Map showing the tracked path of Hurricane Katrina near Louisiana, with a red circle indicating wind speed and category, timestamp, and wind speed data, along with a legend for wind intensity scale.

HuKatrina intersected the Insured Location as a Cat 3 storm. The Hotel received a $100,000 payout.