Lloyd’s has launched a new product called “Parametrix Insurance”. The coverage relies on a parametric trigger to protect SMBs from IT disruptions or downtime.
Lloyd’s launches a parametric policy
LloydDue to the increased risk of business interruption in small and medium-sized enterprises (SMEs),
The offer is led by Tokio Marine Kiln and supported by members of Lloyd’s Product Innovation Facility. The parametric trigger automatically provides compensations if a customer’s critical IT services are disrupted. It can be applied on the Cloud, E-Commerce or other payment systems. Consequently, the policy reduces the time insurers spend assessing a loss or adjusting a claim.
It removes the traditional indemnity trigger used by most policies and instead relies on parametric triggers that automatically pay out if a customer’s critical IT services are disrupted.
This could apply to services such as cloud, e-commerce or payment systems, Lloyd’s suggested, with the aim being to significantly reduce the time insurers spend assessing a loss or adjusting a claim.