Rokstone, a global specialty re/insurance MGA under the Aventum Group, has announced the launch of Rokstone Parametric in partnership with NormanMax Lloyd’s Syndicate 3939.
The initiative begins with a global facility of USD 10 million, offering coverage for earthquakes, hurricanes, tropical cyclones, and typhoons.
Robin Ungless, Deputy Chief Underwriting Officer at Rokstone Specialty, commented: “We’ve been active in the parametric space for a number of years now through our sister MGA Aura Underwriting. This deal is a significant development of those capabilities, enabling us to now offer innovative global parametric solutions for multiple nat cat perils.
“Parametric presents an important opportunity for brokers to address the natural disaster protection gap created from a current lack of capacity in the nat cat market and at a time of increased climate risk and volatility. It is flexible, responsive and provides liquidity.
“Rokstone’s focus on technology, access to data and real-time climate monitoring tools, combined with deep underwriting expertise and claims knowledge in this space, has enabled us in partnership with NormanMax, to create something quite unique in the market. The result is confidence: reliable cover from knowledgeable underwriters with a fast and efficient service.”
Additional perils, including flood coverage, are anticipated to be introduced in 2025. The product is targeting USD 25 million in gross written premiums (GWP) for 2024 and plans to achieve USD 50 million in GWP by 2025.
NormanMax Syndicate 3939 is the first Lloyd’s syndicate dedicated to parametric reinsurance solutions for natural catastrophes across multiple perils.
Rokstone’s parametric policies aim to streamline the process, with quotes often available immediately or within the same day, and claims settled swiftly without requiring proof of physical damage. This offering addresses significant challenges posed by climate change and the complexities of the current insurance market.
Bradley Meier, CEO of NormanMax Syndicate 3939, said: “We’re delighted to partner with Rokstone. We share an entrepreneurial DNA focussed on delivering superior solutions to some of the world’s most severe challenges. It is my belief that we are at the beginning of a global parametric insurance revolution.
“Parametric is the lead violin in a symphony of risk transfer. The ability to work with large, respected MGAs like Rokstone, to provide worldwide access to parametric solutions that utilise both public and proprietary data backed by Lloyd’s capacity, is an important step in the widespread mainstream adoption of parametric products.”
Mark Groenheide, Chief Revenue Officer of NormanMax Insurance Solutions, further added: “We are excited to be working with Rokstone to distribute our products globally, including many underserved markets that currently lack adequate nat cat insurance solutions with the financial security of the Lloyd’s market.
“Parametric has boomed because of the market conditions, but it is here to stay regardless of the cycle – the speed and certainty it gives to customers has been a game changer and it is now an established tool in a brokers’ progressive portfolio of services.”
Rokstone Parametric will underwrite both facultative and treaty business.
