Customers of K2 Parametric can customize their policy to determine the limits and threshold under which a payout is triggered. For example, a hotel that requires hurricane coverage can set the limits to pay out pre-defined amounts for various wind speed thresholds at pre-defined locations.
Speed of payment is one of the key advantages of parametric insurance, Chaucer said. In many cases, claimants receive a payout within a month of the trigger event’s occurrence. Conversely, traditional insurance products may require a long adjustment process.
The partnership with K2 Parametric is the latest parametric initiative from Chaucer, which also provides hurricane