Global specialty re/insurance group, Chaucer, in partnership with K2 Parametric, will provide coverage for US mid-size corporates and municipalities against hurricane and earthquake damage, an area which it notes has previously been underserved by the market.
The partnership with K2 Parametric is the latest parametric initiative from Chaucer, which also provides coverage for property owners that suffer losses from hurricane damage in the Caribbean.
Chaucer will be providing lead capacity for this new parametric product through the London market.
Chance Gilliland, Head of Global Property Delegated Authorities at Chaucer, commented, “Chaucer is excited to be partnering with K2 Parametric to provide hurricane and earthquake cover to the US market. K2 Insurance, through Scott and his team, have the knowledge and expertise to help bridge the insurance gap for these underserved customer segments.
“As risks posed by natural perils become more severe, the need for parametric insurance products is becoming more pronounced. Chaucer is delighted to be expanding its presence in this fast-growing and innovative area of the market. We believe our partnership with K2 Parametric complements our ability to offer catastrophe cover through more traditional products.”
K2 Parametric is a subsidiary of K2 Insurance Services, and is led by Scott Carpinteri, who holds two and a half decades of industry experience, most recently at Swiss Re, where he spent six years building a portfolio of parametric insurance business.
Carpinteri spoke on the partnership, stating, “It’s a pleasure to be working alongside a carrier of Chaucer’s stature, to provide coverage for small to mid-size corporates through the Lloyd’s market.
“Parametric insurance, such as the product offered by K2, can help mid-size businesses transfer risks for business assets and entities that are at high risk of economic losses and costs from earthquakes and hurricanes.”
Meanwhile, in a move to replace an exiting capacity source, K2 International recently announced it is to raise capital for additional reinsurance and possibly US retrocession and industry loss warranties (ILW) underwriting in 2023.
