Chaucer to provide hurricane and earthquake cover to US market

Lloyd’s insurer  Chaucer has said that it will provide lead capacity for mid-size corporates against hurricane and earthquake damage in the US in partnership with K2, a parametric insurance managing general agent.

Chaucer’s additional limit boosts the total K2 parametric line size capability to $15 million. The capacity for the new parametric product will be provided through the London market.

K2 Parametric is a subsidiary of K2 Insurance Services, which is led by Scott Carpinteri, who has 25 years of industry experience, most recently at Swiss Re, where he spent six years building a portfolio of parametric insurance business.

Parametric insurance is a rapidly growing segment of the insurance industry and is popular amongst users for its simplicity and the predictability of its pay-out versus traditional insurance products. The major advantage of parametric products is the speed of payment.

Chance Gilliland, head of global property delegated authorities at Chaucer, said: “Chaucer is excited to be partnering with K2 Parametric to provide hurricane and earthquake cover to the US market. K2 Insurance, through Scott and his team, have the knowledge and expertise to help bridge the insurance gap for these underserved customer segments.”

“As risks posed by natural perils become more severe, the need for parametric insurance products is becoming more pronounced.” Gilliland added. “Chaucer is delighted to be expanding its presence in this fast-growing and innovative area of the market.  We believe our partnership with K2 Parametric complements our ability to offer catastrophe cover through more traditional products.”

Carpinteri, president of K2 Parametric, said: “It’s a pleasure to be working alongside a carrier of Chaucer’s stature, to provide coverage for small to mid-size corporates through the Lloyd’s market.

“Parametric insurance, such as the product offered by K2, can help mid-size businesses transfer risks for business assets and entities that are at high risk of economic losses and costs from earthquakes and hurricanes.”

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