QUAKE: Parametric insurance to close the earthquake protection gap

Earthquakes occur relatively infrequently, meaning they're not normally front of mind for corporates and public entities that make multiple decisions and manage multiple crises on any given day.  The end result of this – regardless of the area – is low penetration of traditional earthquake insurance and meaningful retained earthquake exposure.  And then when an earthquake does occur, they leave behind damage and destruction that can linger for years, and leave businesses, public entities, and communities looking at long roads to recovery.  Those exposed to earthquakes are often responsible for a multitude of incurred costs after an earthquake occurs, including covering traditional insurance coverage gaps, or uninsured losses, such as revenue disruption or emergency response expenditures.  This is where our QUAKE insurance can help.  QUAKE can either complement a traditional programme, or offer standalone coverage for uninsurable or underinsured physical and financial exposures, helping you get back to "business as usual" faster.

In a parametric insurance policy the loss amount is pre-agreed. The policy pays out when an event – in this case, earthquake related ground shaking - meets or exceeds a certain level. For QUAKE, we use the ground shaking reported at the insured's location(s) caused by the earthquake. Discover more of our parametric insurance.

By using the reported ground shaking at the insured's location(s), QUAKE is designed to closely mirror what the customer experiences during the earthquake. Within 10 days of an earthquake, we retrieve the USGS ShakeMap for the earthquake. We find the highest ground shaking during the earthquake at the policyholder's location(s), and determine payout based on this ground shaking.  This allows for policyholders to recover proceeds for earthquakes that have a meaningful impact at their locations.

ShakeMaps are available globally, allowing for us to offer QUAKE to any corporate or public entity exposed to earthquakes.

QUAKE is a fast, flexible and transparent insurance product that gets you cash in hand when you need it the most – in the immediate aftermath of a devastating and disruptive earthquake.

Key facts and benefits:

Payout: Typically within 30 days following an event.

Broad coverage: Payouts can address direct property damage, excess operational expenses, lost revenue, and other immediate needs.

Proof of loss: Simple confirmation of total loss amount, signed by an officer of the company; no receipts required.

Learn more about Customer Case Study: Parametric QUAKE.