Pay-outs are based on the hurricane category that intersects the insured’s radius location (typically 40 miles)

MGA Aura Underwriting has unveiled Aura Parametric, a new Caribbean parametric product to complement its existing Lloyd’s Caribbean binder.

The new parametric product provides reinsurance for hurricanes that intersect a pre-defined radius of an insured’s location (typically 40 miles). 

“Our 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 to create something quite unique in the market – dovetailing traditional indemnity coverage with next generation parametric insurance, backed by A+ rated capacity,” said Tom Green, director, Aura Underwriting.

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

Above-average hurricane forecast

The hurricane season is now underway in the Caribbean, and the number and severity of hurricanes in the area has increased in recent years. There were 21 named storms last year, the third highest on record, exhausting the National Hurricane Center’s hurricane names list.

This year’s hurricane season is once again forecast to be above average, according to NOAA. It expects between 14 and 21 named storms for the seaon.

Parametric policies open up additional opportunities for brokers that sit outside traditional Nat Cat indemnity risk appetites. The policies can run alongside standard indemnity policies and fill the void created from a lack of capacity in the market, explains Aura.

The cover is pan Caribbean, with no restrictions on occupancy type, risk size, claims history, construction or other traditional risk factors. 

Pay-outs are based on the hurricane category that intersects the insured’s radius location. Bespoke policies with higher policy limits and/or different playout parameters are also available.