Rokstone, a global specialty insurance and reinsurance managing general agent (MGA) under the Aventum Group, has launched Rokstone Parametric in a strategic partnership with parametric insurance specialist NormanMax Lloyd’s Syndicate 3939.
The initial $10m worldwide parametric facility will provide coverage for earthquake, hurricane, tropical cyclone and typhoon risks. Additional perils, including floods, are expected to be added in 2025.
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Rokstone expects the new product to reach $25m in GWP by 2024 and an additional $50m in GWP in 2025.
Rokstone Parametric will have the capability to underwrite both facultative and treaty business.
Rokstone stated that quotes will often be available on the same day, if not immediately, and that claims will be settled swiftly, eliminating the requirement to demonstrate a physical loss.
NormanMax Syndicate 3939 is the inaugural Lloyd’s syndicate focused on providing parametric reinsurance solutions for natural catastrophes spanning multiple perils.
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By GlobalDataThrough this partnership, NormanMax aims to broaden its risk sourcing by collaborating with major global MGAs such as Rokstone. This will also allow NormanMax to leverage its risk capital structure at Lloyd’s to offer parametric products to a global clientele.
Rokstone Specialty deputy chief underwriting officer Robin Ungless said: “We have been active in the parametric space for a number of years now through our sister MGA Aura Underwriting. This deal is a significant development of those capabilities, enabling us to now offer innovative global parametric solutions for multiple nat cat [natural catastrophe] perils.
“Parametric presents an important opportunity for brokers to address the natural disaster protection gap created from a current lack of capacity in the nat cat market and at a time of increased climate risk and volatility. It is flexible, responsive and provides liquidity.”
NormanMax Syndicate 3939 CEO Bradley Meier said: “We are delighted to partner with Rokstone. We share an entrepreneurial DNA focused on delivering superior solutions to some of the world’s most severe challenges. It is my belief that we are at the beginning of a global parametric insurance revolution.
“Parametric is the lead violin in a symphony of risk transfer. The ability to work with large, respected MGAs like Rokstone, to provide worldwide access to parametric solutions that utilise both public and proprietary data backed by Lloyd’s capacity, is an important step in the widespread mainstream adoption of parametric products.”
In July, Rokstone launched a new sports and leisure casualty division in the US.
