Parametric insurtech Jumpstart launches with earthquake coverage in US
Insurtech startup Jumpstart, a natural disaster insurance provider for renters and homeowners in the US, has officially launched with its first product offering in California.
Jumpstart claims to be the first parametric insurtech company in the US for earthquakes. It will provide parametric coverage and text message-driven insurance payments for earthquake risks, and plans to roll out its product in other states and expand to other types of natural disasters.
Insurance policies will be underwritten and administered by AmWINS Group, and the insurer will be The Channel Syndicate 2015 at Lloyd’s.
According to the company, the US Geological Survey reported a 99 percent chance of a magnitude 6.7+ earthquake somewhere in California within the next 30 years, but only about 11 percent of California households in 2016 purchased earthquake insurance, which is not required by residential mortgage lenders. As a result, only a fraction of needed rebuild funds are likely to flow into post-quake California.
“The current protection gap – the amount of economic loss that isn’t insured – impacts the entire market and plagues the global economy,” said Trevor Maynard, head of innovation at Lloyd’s. “Jumpstart’s parametric model could play a significant role to help close this gap and build resilience of local communities.”
Will Thorne, innovation leader at the Channel Syndicate, commented: “Jumpstart’s proposition offers something new to consumers who will likely need financial help after a potentially life-changing earthquake event. We are delighted to be working with Jumpstart and AmWINS to facilitate the delivery of Jumpstart’s innovative product in California.”
If you enjoyed this story and have an interest in Insurtech, join us at Intelligent InsurTECH Europe 2018, the only insurtech event with dedicated streams for CXOs, Data/Analytics, and Claims. Find out more here.
More of today's news
Charles Taylor acquires Chilean firm for LatAm expansion
Iran looks into ILS as reinsurance replacement
SCOR-backed insurtech Hokodo raises €1.9m seed funding
Munich Re partners with telematics firm for fleet risk reduction in the US
ForceManager snaps up Italian tech startup Sellf
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk