International specialty re/insurance managing general agent (MGA) Rokstone has introduced Rokstone Parametric, a new insurance product developed in collaboration with NormanMax Lloyd’s Syndicate 3939.
The initial US$10 million global facility will provide coverage for earthquake, hurricane, tropical cyclone, and typhoon risks. Additional perils, including flood, are expected to be added in 2025.
Rokstone anticipates the product will generate US$25 million in gross written premium (GWP) in 2024 and US$50 million in 2025.
NormanMax Syndicate 3939 is the first Lloyd’s syndicate dedicated to natural catastrophe parametric reinsurance products across multiple perils. Rokstone said that quotes will often be available on the same day, if not immediately, while claims will be processed quickly, with no requirement to prove physical loss.
The new product aims to address challenges linked to climate change and market dynamics. Rokstone Parametric will offer coverage for both facultative and treaty business.
Robin Ungless (pictured above), deputy chief underwriting officer at Rokstone Specialty, noted that the company has prior experience in the parametric space through its sister MGA, Aura Underwriting.
“This deal is a significant development of those capabilities, enabling us to now offer innovative global parametric solutions for multiple nat cat perils,” Ungless said. “Parametric presents an important opportunity for brokers to address the natural disaster protection gap created from a current lack of capacity in the nat cat market and at a time of increased climate risk and volatility. It is flexible, responsive and provides liquidity.”
Ungless attributed Rokstone’s ability to develop this product to the company’s use of technology, data access, real-time climate monitoring tools, and underwriting expertise.
Bradley Meier, CEO of NormanMax Syndicate 3939, described the collaboration with Rokstone as a significant step toward broader adoption of parametric insurance products.
“It is my belief that we are at the beginning of a global parametric insurance revolution,” Meier said. “Parametric is the lead violin in a symphony of risk transfer. The ability to work with large, respected MGAs like Rokstone, to provide worldwide access to parametric solutions that utilize both public and proprietary data backed by Lloyd’s capacity, is an important step in the widespread mainstream adoption of parametric products.”
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