Lloyd's: parametric earthquake coverage in New Zealand

In partnership with the start-up Bounce Insurance, Lloyd's [4] of London is developing a parametric earthquake cover.

Named "Bounce", the new product uses state-of-the-art technology and data from GeoNet, the government agency tasked with measuring earthquakes in real time.

The system developed by the start-up allows for automatic compensation of the insured affected by an earthquake. Compensation is paid within five days of the date on which the loss occurred.

Bounce does not replace conventional earthquake insurance, which covers major losses. The solution is designed to provide immediate liquidity with low monthly premiums.