Parametric Earthquake Insurance

When an earthquake strikes, make sure you and your clients are protected from expenses, both apparent and hidden. Unlike traditional insurance, our earthquake solutions have no deductibles and limited exclusions, expediting the recovery process for you and your clients in the aftermath 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.