Aura Underwriting , part of the international specialty re/insurance MGA, Rokstone, and the Aventum Group, has announced the launch of Aura Parametric – a new Caribbean parametric product to complement its existing Lloyds Caribbean binder.
Aura Parametric will provide reinsurance for hurricanes that intersect a pre-defined radius of an insured’s location, which is typically 40 miles.
At the same time, quotes are available in minutes, and qualifying claims are paid out in a matter of days.
With the hurricane season currently underway in the Caribbean, along with the number and severity of hurricanes in the area increasing, Aura Parametric will help to give policyholders confidence in cash flow and speed of pay-out with qualifying claims settled and paid directly to the insured in a matter of days, without the need to prove any physical loss.
In addition, parametric policies also open up additional opportunities for brokers that sit outside the traditional Nat Cat indemnity risk appetites. The policies are able to run alongside standard indemnity policies and fill the void created from a lack of capacity in the market.
Aura’s parametric policy offers the highest limits available, from USD 500,000 to USD 5 million, backed by A+ rated reinsurance capacity. The cover is pan Caribbean, with no restrictions on occupancy type, risk size, claims history, construction or other traditional risk factors.
In a press release, it states that pay-outs are based on the hurricane category that intersects the insured’s radius location, and bespoke policies with higher policy limits and/or different playout parameters are also available too.
Moreover, the Aventum group gives Aura access to real-time climate monitoring, full product administration and fast automated claims settlement.
Tom Green, Director, Aura Underwriting, commented: “This new offering provides the Caribbean with vital coverage in an area with restricted capacity where the severity and frequency of hurricanes is increasing, putting more people and businesses in the region at risk.
“Our 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 to create something quite unique in the market – dovetailing traditional indemnity coverage with next generation parametric insurance, backed by A+ rated capacity.
“The result is confidence: comprehensive cover from knowledgeable underwriters with a fast and efficient service.”
Meanwhile, Acrisure Re recently announced that it has forecasted an above average hurricane season this year, albeit with less activity than the record 2020/2021 seasons.
