What is Parametric Earthquake Insurance?

This new, innovative insurance is certainly the first of its kind.

The concept is simple in essence, if a big earthquake occurs where you live or where your business is based then you would get your sum insured paid out within days of the event. It is even designed to help in smaller shakes too, with a pro-rata amount available based on the size of the earthquake.

How is this relevant to me and my business/home?

This product provides a very broad cover; essentially you can use the funds for anything you wish.

As a business, this cash payout could cover your entire natural disaster excess which would provide significant financial aid at an already stressful time. It could help to cover the costs of relocating an office, setting your staff up with the ability to work from home or covering additional expenses like over time or stress payments to staff.

As a homeowner, you may need to make emergency repairs to your home. You may need to increase childcare, put pets into external facilities or replace broken items immediately. These things may eventually be covered in your overall insurance claim, but will require funds upfront. Earthquake aside, you might decide to put the funds towards a family holiday or even buy a new car!