Specialist insurer Beazley has partnered with Sola Technologies and Spinnaker Insurance Company to provide the first admitted parametric tornado disaster benefit insurance for homeowners.
The innovative Tornado Crisis product leverages National Weather Service (NWS) data to automatically initiate a fast and straightforward claims process.
The new product offers early payments to help policyholders deal with the immediate impact following a tornado.
The NWS will confirm the path and severity along the path, based on the EF (Enhanced Fujita) scale of a tornado, which then acts as a trigger for payments to be generated.
By applying data and technology, we believe the new Tornado Crisis Insurance product will further improve the situation for policyholders who need a fast claims payment in the aftermath of a tornado.
Neil Kempston, Head of Incubation Underwriting
Sola aims to pay the disaster benefit shortly after the event, compared to the extended time it often takes for traditional policies to pay out.
The policy limits of up to $15,000, are intended to cover the deductible and immediate expenses. The coverage can supplement a comprehensive homeowners or renters policy and is currently available in 15 US states in the Midwest and Southeast, with more expected to come online soon.
Our mission is to help people recover faster. We are building the first fully data-driven claims process to protect policyholders from the ever present risk of tornados.
Wesley Pergament, CEO of Sola
“Sola is paving the way for a new era of insurance products that bridges the payment gaps and delays that sometimes happen with traditional insurance.”
Costero Brokers, a Lloyd’s broker and specialist in innovative placements, served as the sole placing broker and was responsible for securing fronting and reinsurance capacity.
