Insurtech startup Jumpstart, a natural disaster insurance provider for renters and homeowners in the US, has officially launched with its first product offering in California.
Jumpstart claims to be the first parametric insurtech company in the US for earthquakes. It will provide parametric coverage and text message-driven insurance payments for earthquake risks, and plans to roll out its product in other states and expand to other types of natural disasters.
Insurance policies will be underwritten and administered by AmWINS Group, and the insurer will be The Channel Syndicate 2015 at Lloyd’s.
According to the company, the US Geological Survey reported a 99 percent chance of a magnitude 6.7+ earthquake somewhere in California within the next 30 years, but only about 11 percent of California households in 2016 purchased earthquake insurance, which is not required by residential mortgage lenders. As a result, only a fraction of needed rebuild funds are likely to flow into post-quake California.
“The current protection gap – the amount of economic loss that isn’t insured – impacts the entire market and plagues the global economy,” said Trevor Maynard, head of innovation at Lloyd’s. “Jumpstart’s parametric model could play a significant role to help close this gap and build resilience of local communities.”
Will Thorne, innovation leader at the Channel Syndicate, commented: “Jumpstart’s proposition offers something new to consumers who will likely need financial help after a potentially life-changing earthquake event. We are delighted to be working with Jumpstart and AmWINS to facilitate the delivery of Jumpstart’s innovative product in California.”