Rokstone partners with NormanMax syndicate for global parametric product

Global specialty insurance and reinsurance managing general agent Rokstone has announced a new partnership with parametric specialist NormanMax, that will see the MGA offering a global parametric product covering earthquake, hurricane, tropical cyclone and typhoon, with additional perils set to be incorporated later.

The partnership is with NormanMax Syndicate 3939 at Lloyd’s, which is the first pure-parametric syndicate in that marketplace.

Initially this is set to be a USD 10m worldwide parametric facility, with a target for USD 25m GWP in 2024 with another USD 50m GWP in 2025.

The expansion of perils, which will include flood, is expected to be available in 2025.

Rokstone Parametric will be able to underwrite both Facultative and Treaty Business, while quotes are expected to be available same day in many cases, if not immediately and claims will be settled rapidly with the need to prove a physical loss.

Through partnerships with MGA’s and risk originators, like Rokstone which is a major global MGA, NormanMax can expand its risk sourcing, while leveraging its risk capital set-up at Lloyd’s to deliver parametric products globally.

Robin Ungless, Deputy Chief Underwriting Officer at Rokstone Specialty, commented, “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. Parametric presents an important opportunity for brokers to address the natural disaster protection gap created from a current lack of capacity in the nat cat market and at a time of increased climate risk and volatility. It is flexible, responsive and provides liquidity.

“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. The result is confidence: reliable cover from knowledgeable underwriters with a fast and efficient service.”

Bradley Meier, CEO of NormanMax Syndicate 3939, added, “We’re delighted to partner with Rokstone. We share an entrepreneurial DNA focussed on delivering superior solutions to some of the world’s most severe challenges. It is my belief that we are at the beginning of a global parametric insurance revolution. Parametric is the lead violin in a symphony of risk transfer. The ability to work with large, respected MGAs like Rokstone, to provide worldwide access to parametric solutions that utilise both public and proprietary data backed by Lloyd’s capacity, is an important step in the widespread mainstream adoption of parametric products.”

Mark Groenheide, Chief Revenue Officer of NormanMax Insurance Solutions, also said, “We are excited to be working with Rokstone to distribute our products globally, including many underserved markets that currently lack adequate nat cat insurance solutions with the financial security of the Lloyd’s market. 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.”