Swiss Re and Palomar Excess and Surplus Insurance Company (Pesic) are providing capacity for a new embedded parametric earthquake insurance policy written by InsurTech firm Cover Genius.
The new cover will be offered to California-based clients of accounting software firm Quickbooks and will be provided through Cover Genius’s XCover insurance distribution platform.
It is understood that Palomar E&S will provide primary capacity for the new product, with reinsurance support from Swiss Re.
Cover Genius’ new quake product will use a parametric trigger, developed in partnership with Swiss Re, that is linked to real-time data from the US Geological Survey. It is intended to pay out almost instantly when an earthquake hits and certain parameters are fulfilled.
Cover Genius is an insurance technology company that has worked with carriers and other industries to provide policy and program solutions since 2014. It began writing travel and retail policies, including for Booking.com, and has grown to become one of the largest writers of consumer auto business in the world.
The InsurTech has relationships with company market insurers including Munich Re, and Crum and Forster in the US, and it is a coverholder at Lloyd’s.
Commenting on the launch of the new product, Cover Genius COO Mitch Doust said: “We are thrilled to partner with Intuit, a Fortune 500 company that is committed to a technology-first approach to insurance that drives better outcomes for small businesses. We are also excited to expand the partnership into additional commercial insurance products down the line.”
Mauricio Comi, head of SMB insurance at Intuit, said: “Cover Genius’ superior technology and customer-first approach align well with our overall strategy to deliver the right tools and services to help small businesses succeed and offer peace of mind to our customers.”
The launch of the new business segment comes as rates in the primary and excess property markets surge, and amid the launch of several new carriers.
Palomar, which specializes in property quake insurance, in August launched an Arizona-domiciled excess and surplus lines company, and said it would target commercial property, including quake, as a growth spot.
Demand for excess property capacity has surged in recent months, in part spurred by the impact of Covid-19 on the commercial real estate market.
Swiss Re North America’s head of P&C Solutions Kassie Bryan told Inside P&C that the Cover Genius quake product would connect capacity with a strong existing customer base, and her team was looking at future deals with other program managers.
“This fits squarely within our remit on the strategic partnerships team,” she added.