Parametric insurance pays within days after a Hurricane
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.
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
PAYOUT EXAMPLES
HRRI POLICY TERMS EXAMPLE
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‘.
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.
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.
HuKatrina intersected the Insured Location as a Cat 3 storm. The Hotel received a $100,000 payout.