MS&AD backed Vortex offers parametric supplemental hurricane cover

Vortex Insurance Agency, a specialist insurtech that offer parametric insurance and weather risk transfer products, backed by MS&AD group’s Mitsui Sumitomo and a subsidiary of MSI GuaranteedWeather, has launched a new parametric supplemental hurricane coverage option, to better protect small and medium-sized US businesses against major hurricane events.

Launching this Spring, the supplemental hurricane cover insurance product will provide payouts for Category 3 plus hurricane events and be available across areas of the United States exposed to significant named storm risk.

Vortex’s supplemental hurricane insurance is designed to cover gaps left in place by traditional insurance policies, the company said.

The parametric hurricane policies can trigger if an insured business is located within a 20-mile single circle, or 20 to 40-mile double circle, from the hurricane center.

Policies are purchased online and there is no need to file a claim, the insurance being parametric in nature, so payouts can be swiftly made.

“Over the last few years, we have seen too many businesses hurt from hurricanes in all parts of the country–not just coastal locations in the usual ‘hot-spots’ like Florida and Texas. And I don’t mean just simple cases of property damage,” explained Andy Klaus, Vice President of Business Development at Vortex. “Even when there’s no physical damage, small business owners often struggle to deal with the interruptions in business in the aftermath of the storm.

“This new Vortex Hurricane Insurance eases these difficulties and can keep businesses from experiencing devastating revenue losses during tough times without the hassle of having to prove damage or loss, and wait for a claim to be processed.”

Coverage will be automatically triggered once a Category 3 or higher hurricane passes within a 20 or 40-mile circular region of the business location, depending on policy customisation, with a quick payout made whether damage occurs or not.

An annual policy, the parametric hurricane insurance is structured to offer payouts should more than one hurricane trigger it within the same policy year and there is no need to prove loss or business interruption, Vortex said.

The key to selling parametric cover to businesses in this way is making it simple, useful protection, that is easy to sign up to and simple for buyers to understand when a payout could occur.

Here, MSI GuaranteedWeather and Vortex have ample experience and with this new product launch they are trying to broaden the reach of parametric hurricane coverage, by making it easy to buy and understand.