Insurtech Yokahu partners with Caribbean brokers on parametric hurricane protection

Insurtech Yokahu has launched strategic partnerships with four insurance brokers based in the Caribbean. The insurtech uses parametric underwriting and data visualisation to provide hurricane/tropical cyclone protection. Yokahu said it is exploring ways to offer insurance through local businesses as an employee benefit. The four brokers are: BCMG Insurance Brokers in Jamaica; Colina General Insurance Agents and Brokers in The Bahamas; WJM Holdings in Saint Lucia; and Caribbean Risk Group in the US Virgin Islands. By working with four of the leading insurance brokers in the region, Yokahu said it is “ensuring effective distribution of this solution to the people who need it most – driving to close the protection gap further and improve the resilience of local families and businesses in the run-up to the hurricane season”. Yokahu’s parametric approach means that payouts can be made within 24 hours, without policyholders needing to lodge a claim or deal with loss adjusters in the event of a major storm. In the event of wind speeds reaching more than 74 miles per hour at an insured location, funds – currently up to $10,000 depending on the strength of the hurricane – are transferred directly to the claimant’s bank account or digital wallet, usually within 24 hours. Tim McCosh, CEO and Founder of Yokahu, said: “Uptake of hurricane insurance in the Caribbean is low and yet these communities are disproportionately at risk from the impacts of hurricanes. Yokahu is aiming to increase access to hurricane protection for everyday people by providing affordable parametric-based policies. One of the key takeaway actions from COP26 was the ongoing urgent need to improve financial access for vulnerable communities, but insurance products continue to be unaffordable in the main for those communities that really need this protection.” He added: “So, we are delighted to be partnering with our first four brokers in the Caribbean to offer our microinsurance product and begin to change this paradigm. Opportunities are numerous for this product, particularly as we are also exploring ways to offer Yokahu insurance through local businesses as an employee benefit. Working together, we can help to make effective hurricane insurance across the Caribbean more affordable and take steps to tackle the region’s estimated $50bn protection gap.” Ian Miller, chief technical director at BCMG Insurance Brokers, said: “In 2021 alone, seven hurricanes – of which four were major – swept through the Atlantic. Evidence is suggesting that hurricanes are becoming more powerful and more widespread; for those most vulnerable communities, insurance against such impacts is vital – particularly as the Caribbean is disproportionately impacted by hurricanes.” He continued: “Thanks to its low premiums and the fact the product is entirely digital, Yokahu hurricane policies are more accessible to a greater number of people, and because funds are automatically paid following a hurricane, rebuilds can begin immediately, helping stimulate growth for both the local community and wider economy. From the insurance point of view, the beauty of the transparency of the parametric trigger makes everything clear for policyholders.” He added: “We and our broking colleagues at the other three firms are also excited to be able to offer this product as a form of employee benefit and look forward to encouraging local businesses, especially hotel groups, to take up Yokahu hurricane protection for their employees, which in turn will also help lower the financial impact following a hurricane in the region.”

Insurtech Yokahu partners with Caribbean brokers on parametric hurricane protection

Yokahu looking at ways to offer insurance as employee benefit

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