Lloyd’s launches work disruption insurance policy for SMEs, led by Tokio Marine Kiln

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Lloyd’s has launched a new “first-of-its-kind” business interruption policy for small and medium-sized businesses (SMBs), specifically designed to protect them against IT interruptions or downtime.

Parametrix Insurance provides simple and reliable coverage by removing the traditional indemnity trigger that most insurance policies use today. Instead, the new solution uses a parametric trigger, which means police automatically pay if a client’s critical IT services – such as the cloud, e-commerce, or payment systems – are disrupted, said Lloyd’s in a statement, noting that this will significantly reduce the time insurers spend assessing a loss or settling a claim.

The new product is led by Tokio Marine Kiln (TMK) and supported by other members of Lloyd’s Product Innovation Facility (PIF), including RenaissanceRe. This is the first standard parametric IT downtime policy suitable for small businesses, Lloyd’s said.

A representative from Lloyd’s said the product is currently in the proof-of-concept phase, being offered to SMEs in Israel. “It’s a controlled experience that we hope will go well, and then we can evolve once we get a better understanding of it,” said the representative.

Yonatan Hatzor

“Businesses have shifted to managing most of their critical IT operations using third-party service providers, increasing their vulnerability to disruption,” said Yonatan Hatzor, co-founder and CEO of Tel Aviv-based Parametrix Insurance. .

“As a result, critical tech downtime has become the fastest growing risk for businesses today, whether you’re a tech company or not. On top of that, the complaints process that exists on the ground is complicated, costly and time consuming, ”Hatzor added.

“Parametrix’s approach addresses all of these challenges, offering a solution that saves time and money, while making technological assurance accessible to new business segments. We are excited to launch the first ‘standard’ parametric insurance product for IT downtime, ”he said. “This is an important milestone for us, and we are grateful to TMK, Howden and Lloyd’s Product Innovation Facility for helping us develop our product and providing us with valuable information and support throughout the process. .

“We know that insurance products and services must evolve to meet the challenges of the COVID-19 pandemic and help our customers cover new or increased risks they may encounter now or in the future,” commented Trevor Maynard, Lloyd’s Innovation Manager. .

“That’s why Lloyd’s Product Innovation Facility and our new Lloyd’s Lab cohort are both exploring ways in which the industry can do this more efficiently. I’m delighted to see proof of that today with the launch of Parametrix, ”added Maynard.

“Third-party cloud service providers help our customers do business in an ever-changing world and Parametrix has done a great job developing an insurance product that helps build resiliency in this space,” said Tom Hoad, Head of innovation at Tokio Marine Kiln and chair of the Product Innovation Facility.

David Rees, Cyber ​​Broker at Howden, said this “breakthrough project” combines “the best of Lloyd’s product innovation and capability, as well as a collaboration with our market-leading cyber capability in Howden Israel led by Shay Simkin “.

Source: Lloyd’s

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