Global reinsurance giant Swiss Re has partnered with primary insurer Falls Lake and managing general agent Arrowhead for the launch of Quake Assist, a parametric insurance solution providing Business Interruption (BI) cover within California, even if no damage occurs to the insured’s building.
“What makes this product unique is the fact that the insured’s property doesn’t need to have experienced any damage, for this business interruption coverage to take effect. It’s triggered when a business is closed due to an earthquake,” explained Steve Bouker, Executive Vice President of Arrowhead.
Payments are based on the earthquake’s magnitude (4.0 or greater) and the distance of the insured from the epicentre. Eligible customers receive their cash instantly once this condition is met.
Swiss Re developed the proprietary model for Quake Assist, Falls Lake provides the capacity, and coverage is marketed and sold to businesses through Arrowhead.
“Even though they may be closed and losing income, business owners still have ongoing expenses such as payroll and rent,” Bouker added.
“This program provides peace of mind to business owners, knowing they’re covered.”
