Swiss Re, Falls Lakes offer parametric policy for California quakes

The San Andreas fault in California

Swiss Re Ltd. and primary insurance partner Falls Lake Insurance Cos. have introduced Quake Assist, a parametric insurance product that aims to expedite and simplify payments to victims of earthquakes in California, Swiss Re said Friday.

Aimed first at small and medium-sized businesses, Quake Assist is structured as parametric insurance under which coverage payments are triggered automatically once certain parameters are met, the statement said.

Payments are based on the earthquake’s magnitude of 4.0 or greater and the distance of the policyholder from the epicenter, and customers receive a payout once this condition is met, the statement said.

Swiss Re developed the proprietary model for Quake Assist, insurance partner Falls Lake provides the capacity, and coverage is marketed and sold to businesses through Arrowhead General Insurance Agency Inc., the statement said.