K2 Parametric Insurance Services, a subsidiary of K2 Insurance Services, has partnered with Homesite Underwriting Managers to offer parametric natural catastrophe policies in the US.
K2 Parametric works with both retail and wholesale brokers to provide parametric insurance solutions to middle-market and larger commercial clients.
Founded in 1997, Boston-based Homesite Insurance said it was one of the first companies to enable customers to purchase home insurance directly online, during a single visit, and now describes itself as the nation’s leading direct writer of homeowners insurance, as well as condominium and renters insurance.
The partnership will see K2 Parametric offers commercial parametric natural catastrophe policies for US earthquake and hurricane risks with limits up to $10m per policy.
Parametric insurance provides payment based on the location and intensity of a natural catastrophe event.
K2 Parametric said coverage can be customised to an insured’s specific geographic needs. Upon triggering, the policy responds quickly, in as little as 30 days, and the proceeds can be used for any economic costs not covered by other insurance or recoveries.
Scott Carpinteri, president of K2 Parametric, said, “I am impressed with the time the team at Homesite invested in learning how Parametric Insurance is written and why it’s a powerful risk transfer tool for commercial entities exposed to natural catastrophe risk.”
Aura Underwriting, the specialist Caribbean catastrophe managing general agent of Rokstone Group, recently launched a Caribbean parametric product to complement its existing Lloyd’s Caribbean binder.
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