Published on
04 February 2025
This innovative policy uses sensors to measure peak spectral acceleration at various university properties, providing quick payouts based on real-time seismic activity. Parametric insurance complements traditional coverage by offering speedy, transparent loss payments once predefined thresholds are met. Unlike traditional policies that may involve delayed payouts due to lengthy adjustments, parametric solutions offer faster financial relief, typically within a week or two.
The sensor-based approach has previously been introduced in regions such as Mexico and the Caribbean, demonstrating benefits including swift payouts and precise data. Clients in these areas have responded positively, noting the accuracy of sensor-provided, near real-time data.
The localised data from site-specific sensors reduces basis risk, with precise measurement at location. This approach also aids development of more effective business continuity plans by identifying precise impacts at specific sites, a crucial feature since ground motion can vary significantly over short distances. The real-time information enables clients to prioritize emergency responses, such as evacuations and deploying emergency crews, improving post-earthquake crisis management.
Our parametric policies can be tailored to client needs, offering a range of coverage limits from small to large-scale policies, thus filling coverage gaps effectively. This solution addresses gaps in regions with limited seismic data, enhancing disaster preparedness and response.
