Aura Underwriting, which is part of global specialty insurance and reinsurance MGA Rokstone, has launched a new Caribbean parametric product which provides reinsurance for hurricanes, with qualifying claim payouts in days.
The new solution, Aura Parametric, compliments the company’s existing Lloyd’s Caribbean binder, and comes as the frequency and severity of storms in the region increases.
In fact, Aura notes that in 2021, the Caribbean recorded 21 named storms, the third highest ever recorded, as it exhausted the National Hurricane Centre’s names list for the year.
The new product provides buyers with reinsurance for hurricanes that intersect a pre-defined radius of an insured’s location, typically 40 miles. Given that this is a parametric solution, quotes are available in minutes, and according to Aura, qualifying claims are paid out in a matter of days.
For policyholders, Aura says that its parametric cover instils confidence in cash flow and speed of payout, with qualifying claims settled and paid directly to the insured in days, absent the need to prove physical loss.
According to Aura, its parametric reinsurance product offers the highest limits available, from $0.5 million to $5 million, and is backed by A+ rated reinsurance capacity. Importantly, the cover is also pan Caribbean, meaning there’s no restrictions on things like occupancy type, risk size, claims history, construction, and other traditional risk factors.
Additionally, Aura Parametric offers bespoke policies with higher limits and/or different payout parameters are also available.
Tom Green, Director, Aura Underwriting, said, “This new offering provides the Caribbean with vital coverage in an area with restricted capacity where the severity and frequency of hurricanes is increasing, putting more people and businesses in the region at risk. Our focus on technology, access to data and real-time climate monitoring tools, combined with deep underwriting expertise and claims knowledge in this space, has enabled us to create something quite unique in the market – dovetailing traditional indemnity coverage with next generation parametric insurance, backed by A+ rated capacity.
“The result is confidence: comprehensive cover from knowledgeable underwriters with a fast and efficient service.”
Rokstone is the Aventum Group’s global specialty re/insurance MGA, with offices in the UK, Europe, US, Asia, Africa, and the Middle East. Aventum provides Aura with access to real-time climate monitoring, as well as full product administration and fast automated claims settlement.