Thimble, an insurance API solution developer, has been picked by Lloyd’s Lab Innovation accelerator programme where it will receive support to develop products in response to Covid-19.
The InsurTech states that during the pandemic many small businesses have discovered business interruption insurance does not cover losses incurred due to the Covid-19 pandemic. As a result, many have issues for the industry and even lawsuits between insurers and SMEs, it claims.
By being a part of the Lloyd’s Lab, Thimble hopes to develop a a low-limit parametric contingent business interruption coverage to protect businesses from Covid-19 and future pandemics. In doing so, the InsurTech can become a “first-line of defence” that pays small businesses immediately if specific criteria are met.
Thimble CEO and founder Jay Bregman said, “Traditional insurance policies do not work for pandemics because most policies will pay out at the same time.
“No private company can maintain a balance sheet big enough to pay those claims and survive. We can, however, sell smaller policies with lower limits, that would pay out programmatically and instantly if criteria are met– for example, if all the businesses within a certain zip code are forced to close. We’re thrilled to have the support of Lloyd’s on this vitally important program, as we chart the course for recovery and renewed confidence for our small business partners.”
There have been more than 140 applications for the fifth cohort of the Lloyd’s Lab, which will commence on September 7 2020.
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