Global Parametrics

Overview

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.

The main benefits

01No proof of physical loss to your property
02No proof of loss to business income
03Loss payment wired within days directly to the insured
04Loss trigger based on data from the National Hurricane Center (NHC)
05Transparent product administered through a best-in-class platform
06Backed by a reputable reinsurer

How it works

Parametric insurance pays within days after a Hurricane.

The trigger and the payout are agreed before cover starts.

Step 01
Event measured
The National Hurricane Center records 6-hourly and landfall points for each hurricane track: wind speed, storm category, location and time.
Step 02
Agreed threshold met
The track crosses the Insured Location, a circle around the Insured Address, at a category that pays under the Event Coverage Table.
Step 03
Pre-agreed payout
The loss payment is wired to the policyholder's bank account within days. No proof of physical loss is needed.

Map of Florida with hurricane track points coloured by wind intensity and a circle marking an Insured Location.

Which category counts

The relevant hurricane category for the insurance is the highest value of:

Hover over a rule to see it on the track

The last measurement point before the track intersects the Insured Location
Any measurement point within the Insured Location
The first measurement point after the track has left the Insured Location

ExampleIn this example the highest category is Cat. 4, so the payout is 40% of the policy limit.

Event coverage

If the path of a hurricane intersects the Insured Location, loss payments are due based on the Event Coverage Table. There may be multiple payouts during the Policy Period; the maximum payout is capped at the Sum Insured.

Hurricane categoryPayout, % of policy limit

Cat. 1—

Cat. 2—

Cat. 320%

Cat. 440%

Cat. 5100%

Policy terms

An example of the terms of an HRRI policy.

Insured Address: Address of client property
Insured Location: Circle around the Insured Address
Policy Period: 1 year (or season)
Peril: Losses from hurricane event
Event: Hurricane track intersecting the Insured Location
Eligible Event: Maximum reported hurricane category is equal to or higher than the minimum payout derived from the Event Coverage Table

Payout example

A shop owner in Panama City, FL purchased an HRRI for the 2018 storm season with a Policy Limit of $1,000,000. The Insured Location is a circle with a 40-mile radius around the shop, the Insured Address.