Popular Insurance launches hurricane parametric microinsurance
Popular Insurance has announced the launch of a hurricane parametric microinsurance policy designed to help clients respond more effectively to emergencies following such weather events.
It is an insurance product that allows clients, depending on the coverage selected, to receive up to $3,000 in cash after a measurable event, in this case, hurricane winds, the bank stated.
The product utilizes hurricane track data from NOAA’s National Hurricane Center (NHC) and determines the number of payments based on the highest calculated wind speeds over land within 25 miles of the center of the municipality, where the insured property is located. The stronger the winds at the client’s location, the higher the payment, up to the policy limit.
If the coverage is activated, the benefit payment is disbursed in 15 days or fewer after the event. In addition, it does not require evidence of damage or loss, it has no deductibles, and the client can use the benefit for any purpose. The product is available to any individual who has an interest in a property where they live, rent, work or own. It can be an apartment, a cement or wooden house and it can be located in any of the island’s 78 municipalities.
“We’re very happy to add this microinsurance to the range of products we have at Popular Insurance. Parametric microinsurance is another important piece of personal risk management. Undoubtedly, the convenience and flexibility that it offers clients in using the financial compensation to cover any expense makes it an excellent option to prepare for the hurricane season,” said Ramón Lloveras, president of Popular Insurance.
The initiative is a 100% digital offering in partnership with Raincoat, a Puerto Rican technology company, and insurer, Óptima Seguros.
“The idea for Raincoat came after Hurricane María, when there were many unexpected expenses but very little quick financial help,” said Jonathan González, CEO of Raincoat.
“It was based on this experience that we decided to develop a technological platform that would allow this type of solution. That’s why we are honored to be able to bring this product to more Puerto Ricans through Popular, which has always stood out for supporting the communities it serves in difficult times,” González said.
The hurricane parametric microinsurance product takes effect 14 days after purchase and is intended for individuals.