Addressing today’s emerging risks.

GJS Re has decades of experience with parametric insurance.  Whether the coverage trigger is a hurricane, earthquake, flood, time delay, or another metric, GJS Re understands how this unique cover can protect all types of risks.  Give us a call!

Parametric insurance is an attractive alternative and enhancement to traditional insurance policies.   Parametric insurance exists to fill protection gaps in more traditional insurance programs.

Background

Parametric insurance is tied to a metric or an index that is easy to measure or determine.  Simply stated, the insurance carrier agrees to make a payment upon the occurrence of a triggering event.  For example, if the parametric is triggered when a hurricane develops a specified wind speed at the insured location, the insurer will pay a pre-agreed amount to the insured.  Importantly, the claims process is much simpler than traditional insurance products, usually allowing the claim to be paid in full in as little as 24-48 hours.

Exposure

A homeowner or commercial business experiences significant loss when a catastrophe occurs.  Their traditional insurance program requires an inspection of the property to confirm that a covered peril was the cause of the loss incurred.  In addition, the amount of damage must be estimated, from which deductibles and policy limits are applied before a payment can be made to the insured.  It is not uncommon for this process to take several months before the insured receives their funds.  In the meantime, the insured has incurred out of pocket expenses that may or not be reimbursed once their claim is finalized.

A parametric insurance solution complements traditional insurance by paying a pre-determined amount to the insured in a relatively short period of time.  Importantly, the insured can use those funds any way they wish, from the extra expenses to protect their property from further loss to a business interruption loss.

Whether the risk you are working with is an individual homeowner or a business, GJS Re can help you craft the right parametric cover for your client.