NormanMax launches parametric earthquake reinsurance in Chile

NormanMax Insurance Holdings, the US based parametric insurance and reinsurance group launched by former Universal founder and CEO Bradley Meier, has expanded the reach of its parametric reinsurance solutions to include coverage for earthquakes in Chile.

Seeing a need for greater availability of responsive risk transfer solutions, NormanMax has been expanding the scope of its product offering over recent months.

The company recently began offering a parametric retrocession product that is underwritten via its recently launched Lloyd’s syndicate.

Now, NormanMax has announced a new location where it can support parametric reinsurance arrangements, Chile.

The company said, “As Chile continues to navigate the challenges posed by seismic activity, the need for innovative and responsive insurance solutions has never been greater.

“At NormanMax Insurance Solutions, we understand the critical importance of safeguarding businesses, and infrastructure from the devastating impact of earthquakes.

“Our team at NormanMax is proud to offer tailored reinsurance solutions designed to address the unique risks faced by cedents in Chile. Unlike traditional reinsurance, our parametric reinsurance products can provide swift, predefined payouts based on the intensity of the earthquake, enabling faster recovery and continuity for affected regions.”

With its dedicated parametric syndicate 3939 at Lloyd’s now providing NormanMax with its own capacity source, the company is building out its product range in regions where the insurance and reinsurance industry are active, but hazard levels often deter more traditional indemnity solutions or make them overly expensive.

Chile faces a particularly high-level of earthquake hazard, making it a perfect location for parametric risk transfer solutions.

While parametric insurance can support businesses directly, a parametric reinsurance offering can also support global insurance carriers that operate in the country, which can allow them to be more confident in deploying capacity knowing there is a responsive reinsurance or hedging solution available to them.

NormanMax explained, “Chile’s geographic location makes it particularly vulnerable to earthquakes, and NormanMax Insurance Solutions is committed to helping transfer these risks. Our parametric reinsurance solutions are built to support resilience, helping businesses and communities bounce back faster after an event.

“We’re here to work with insurance companies, brokers, and risk managers across Chile to provide robust reinsurance solutions. Together, we can create a more resilient future for everyone.”