Parametric Earthquake Insurance
Protect you and your clients from the impact of earthquakes with our innovative parametric insurance. No more waiting for damage assessments, haggling over claims, or lengthy litigation battles - our payouts are triggered by the size and severity of an earthquake.
What is Parametric Earthquake Insurance?
Parametric earthquake insurance is a type of coverage that pays out a predetermined amount based on a specific seismicity trigger – magnitude, Peak Ground Acceleration, and others. Further, unlike traditional insurance, whose payout process requires high deductibles, a lengthy claims process, and adversarial parties - parametric insurance operates differently and more efficiently.
Because parametric earthquake insurance payouts are based solely on the size and severity of the earthquake, it has a rapid claims process in the aftermath of an earthquake – think weeks, not months or years. The best part? There is no limit on what the insured can do with the parametric payout, meaning the insured can focus on what matters most after an earthquake occurs.
How Does Parametric Earthquake Insurance Work?
1. A Qualifying Earthquake Occurs
A qualifying earthquake occurs in the Covered Territory of a policyholder.
2. The Insured Sustains Losses
The earthquake causes losses – physical and/or economic – to the insured. The insured then submits a claim using the Proof of Loss form located within their policy documents.
3. Parametric Coverage Triggers
NormanMax receives an event report, compiled by a third-party data provider, measuring the seismicity trigger caused by the earthquake in the Covered Territory. These triggers are measured and recorded by the US Geological Society (USGS) or other third-party, approved geologic service(s). If the predefined triggers are met, policyholders receive immediate payouts without the need for a lengthy claims process.
4. The Insured is Paid
The policy provides the amount of coverage available to pay the insured’s claims, based on the highest payout available within the Policy and the losses, stated by the policyholder, in the Proof of Loss form.
Key Benefits of Our Parametric Insurance
Hassle-Free Claims Process
Parametric insurance removes the need for complicated claims processes, saving you and your clients time and frustration.
Speedy Payouts
Get the financial support you and your clients need quickly and efficiently after a storm occurs, with no limitations on how the insured can utilize the payout.
Fair and Transparent
Payouts are based on objective seismic parameters, verified by a reputable third-party, ensuring fairness and transparency for the insured.
Providing Coverage Where Others Avoid
NormanMax’s unique parametric solutions allow for coverage to be placed in areas underinsured or avoided by traditional insurance markets – without the need for high deductibles.
Coverage and Policy Options
Residential
Coverage for homes and personal belongings against earthquake damage.
Business
Protect your business assets, inventory, and revenue from earthquake-related risks.
Infrastructure
Insurance options for critical infrastructure such as power plants, roads, and public facilities.