K2 Insurance Services LLC’s parametric insurance managing general agency (MGA) K2 Parametric has announced a capacity partnership with insurer Homesite, which will see it offering parametric peak natural catastrophe peril protection in the United States.
Homesite Underwriting Managers LLC, a program business unit of the AM Best ‘A’ rated Homesite Insurance Group, has enabled K2 Parametric to offer commercial parametric natural catastrophe insurance policies covering earthquake and hurricane risks, with limits up to $10 million per policy.
The parametric insurance policies can be customised based on location to meet clients needs, K2 said, with payouts possible in as little as 30 days, the parametric nat cat policies can help to cover economic costs not that do not fall under other insurance or recoveries, the MGA further explained.
“I am impressed with the time the team at Homesite invested in learning how Parametric Insurance is written and why it’s a powerful risk transfer tool for commercial entities exposed to natural catastrophe risk,” explained Scott Carpinteri, President of K2 Parametric.
“Homesite Underwriting Managers is excited to add K2 Parametric Insurance Services LLC to our partners,” added Grace Meek, CEO & President of Homesite Underwriting Managers. “Their expertise in this unique coverage fills a void in this market space and adds yet another sustainable and profitable partnership to our portfolio.”
“We are excited to be able to bring together one of the strongest parametric experts with our current largest carrier partner, Homesite Underwriting Managers. We look forward to quickly becoming the largest market in this important emerging product line,” Bob Kimmel, Chief Executive Officer of K2 Insurance Services also said.
K2 is clearly ambitious and wants to become a meaningful player in the growing parametric insurance and risk transfer space. The company launched the new parametric MGA with the hire of former Swiss Re CorSo exec Carpinteri in November 2021.
The company cites double-digit annual growth in parametric insurance premiums and said that clients and partners should, “Look for K2 Parametric to grow capacity relationships and product offerings over the months and years to come.”