Aura Underwriting, the specialist Caribbean catastrophe managing general agent (MGA) of Rokstone Group, has launched a new parametric product to consolidate its existing Lloyd’s Caribbean portfolio. The MGA specialises in providing professional insurance and reinsurance solutions for the placement of niche, high-quality risks across the Caribbean region. Following the commencement of the official ‘hurricane season’, Aura Parametric provides reinsurance for hurricanes that intersect a predefined radius of an insured’s location (typically 40 miles) and according to the hurricane category. A category-3 event receives a 20 per cent pay-out of the policy limit, while category-4 receives 40 per cent and category-5 receives 100 per cent. The pan-Caribbean cover has no restrictions on occupancy type, risk size, claims history, construction, or other traditional risk factors. As with any parametric policy, quotes are rapidly available, with qualifying claims usually paid out within days. Aura Parametric offers the highest limits available, ranging from US$500,000 to $5 million, backed by ‘A+’ rated reinsurance capacity. The new product also provides additional opportunities outside of traditional natural catastrophe indemnity risk appetites, as Aura Parametric can be implemented in tandem with traditional indemnity policies to address the lack of capacity in the market. With the increasing frequency and severity of hurricanes in the area, Aura Parametric gives policyholders confidence in cash flow and speed of pay-out without needing to prove physical damage, Rokstone says. Tom Green, director at Aura Underwriting, adds: “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. The result is confidence: comprehensive cover from knowledgeable underwriters with a fast and efficient service.”
