Beazley has joined forces with Sola Technologies and Spinnaker Insurance Company to introduce the industry's first admitted parametric tornado disaster benefit insurance designed for homeowners.
This tornado crisis product employs National Weather Service (NWS) data to automatically initiate a streamlined claims process which facilitates early payments to aid policyholders in managing the immediate aftermath of a tornado.
Through the proposition, the NWS confirms the tornado's trajectory and severity along its path, using the EF (Enhanced Fujita) scale as a benchmark. This confirmation acts as a trigger for generating payments. Sola's objective is to swiftly disburse the disaster benefit shortly after the event, which stands in contrast to the often-prolonged timeline associated with conventional policies' payouts.
With policy limits reaching up to $15,000, the coverage aims to cover deductibles and immediate expenses. It serves as a complementary addition to comprehensive homeowners' or renters’ policies and is currently accessible in 15 states across the Midwest and Southeast regions of the United States. Additional states are anticipated to become part of the program in the near future.
Costero of Lloyd’s also serves as the product’s sole placing broker and is responsible for handling fronting and reinsurance capacity.
“Beazley is recognized for its dedication to providing clients with a seamless and stress-free claims process,” Beazley head of incubation underwriting Neil Kempston said. “Through the application of data and technology, we believe that the new Tornado Crisis Insurance product will further enhance the experience for policyholders who require swift claims payments in the aftermath of a tornado. We are delighted to support this innovative solution that can assist policyholders in addressing the immediate challenges that follow a tornado.”
“Our mission is to help people recover faster. We are building the first fully data-driven claims process to protect policyholders from the ever-present risk of tornados,” said Wesley Pergament, Sola CEO. “Sola is paving the way for a new era of insurance products that bridges the payment gaps and delays that sometimes happen with traditional insurance.”
Elsewhere in the business, the specialist insurer also announced that its long-standing chief financial officer Sally Lake has informed the board of her intention to leave the business in 2023.
What are your thoughts on this story? Please feel free to share your comments below.
