Specialist MGA launches parametric product to bridge protection gap
International speciality (re)insurance MGA Rokstone has teamed up with NormanMax Lloyd’s Syndicate 3939 to launch a new parametric insurance product.
The proposition, called Rokstone Parametric, will initially feature a £7.9m ($10m) worldwide facility to cover earthquakes, hurricanes, tropical cyclones and typhoons.
Further perils, including flood coverage, are set to be included in 2025.
The product, which can be used for both facultative and treaty business, is expected to provide quotes on the same day.
Rokstone is targeting a gross written premium (GWP) of £19.75m ($25m) in 2024 and an additional £39.5m ($50m) in 2025.
Robin Ungless, deputy chief underwriting officer at Rokstone Specialty, said: “We’ve been active in the parametric space for a number of years now through our sister MGA Aura Underwriting.
”This deal is a significant development of those capabilities, enabling us to now offer innovative global parametric solutions for multiple nat cat perils.”
Protection gap
The product has been designed to address the natural disaster protection gap.
Ungless said that this came from a current lack of capacity in the nat cat market and at a time of increased climate risk and volatility.
He added: “Rokstone’s focus on technology, access to data and real-time climate monitoring tools, combined with deep underwriting expertise and claims knowledge in this space, has enabled us in partnership with NormanMax to create something quite unique in the market.”
Mark Groenheide, chief revenue officer at NormanMax Insurance Solutions, said that his firm was “excited” about the partnership, as it provided an opportunity to distribute its products globally.
This includes across underserved markets ”that currently lack adequate nat cat insurance solutions with the financial security of the Lloyd’s market”, he added.
Groenheide continued: “Parametric has boomed because of the market conditions, but it is here to stay regardless of the cycle – the speed and certainty it gives to customers has been a game changer and it is now an established tool in a brokers’ progressive portfolio of services.”
