Lloyd’s, Bounce pair on New Zealand parametric quake cover
Lloyd’s of London has partnered with insurance startup Bounce to launch a parametric earthquake insurance policy for commercial customers and homeowners in New Zealand.
The new product uses real-time data from government agency GeoNet to track peak ground velocity, which triggers payment to policyholders when tremor shakes reach 20cm per second. The policy automatically pays out within five days of breaching the trigger point and payments are stepped, with stronger earthquakes resulting in larger payments under the cover.
Developed in partnership with Bounce’s founders – Lloyd’s, Guy Carpenter, Marsh and Jumpstart Insurance – the product is designed to work alongside traditional earthquake insurance but target quick payments to policyholders in the immediate aftermath of a tremor.
Lloyd’s CEO John Neal said: “We’re thrilled to be able to step up and provide a technologically sophisticated and innovative earthquake insurance product, Bounce, which will provide customers with much-needed support and financial resilience in the immediate aftermath of an earthquake.”
Victoria Carter, chairman of Global Capital Solutions, international at Guy Carpenter, said: “This pioneering coverage has the potential to generate considerable societal benefit through providing individuals and communities with the financial resilience to address future earthquake events. It demonstrates once again the pioneering approach of Lloyd’s, and Guy Carpenter and Marsh are extremely proud to have played a key role in bringing this new product to market.”
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