An up-and-coming insurance company based in California is looking to grow within the catastrophe market of another state.
Assured Risk Cover (ARC) in Pleasanton, CA has plans to expand its business in Florida through its parametric insurance product, StormPeace.
Alok Jha, CEO and co-founder of ARC, claims that StormPeace’s customers get payments almost immediately following a disaster, with the values based on the intensity of the hurricane and the distance of the storm from a customer’s property.
“Last year after Hurricane Irma, Assured Risk Cover paid 100% of eligible claims,” Jha told Business Observer, “and 98% of these claims were paid within three business days, most within one business day.”
Parametric insurance is used to cover for supplemental losses from a catastrophe event, but predetermined parameters must first be met before the coverage kicks in. The payment for a claim under a parametric policy is also agreed upon before the event, allowing for a quick claims adjustment process. The catch is that parametric policyholders must be able to prove the loss after receiving payment.
Jha explained that, through StormPeace, customers have used the payouts to cover for things such as repairing damaged pool cages, replacing spoiled food, and purchasing hotel rooms/food for disaster victims. The product can also be used to pay for tree and debris removal, as well as another policy’s hurricane deductible.
“Our mission,” Jha remarked, “is to get financial relief to our policyholders in a quick period of time.”
Consumers can purchase StormPeace to equal their deductible up to $60,000. Business Observer reported that while StormPeace is not licensed by the Florida Office of Insurance Regulation, the agency has no objections to the product.
Founded in 2014, ARC is backed by Inventus Capital Partners – a venture capital firm based in Silicon Valley that has invested in companies such as IntelliVision and Poshmark.
While it is styled as an insurance start-up from out of state, ARC has recently undertaken two major decisions to show just how committed it is to the Florida market. The first was the company’s decision in early June to name former Florida insurance commissioner Kevin McCarty to its board of advisers. The other was ARC signing an agreement with the Florida Association of Insurance Agents to enable the latter to promote, quote and bind StormPeace policies.
