LLOYD'S LAUNCHES PARAMETRIC BI PRODUCT

Lloyd’s has launched a parametric business interruption policy for small and medium-sized enterprises (SMEs), specifically designed to protect them against IT disruption or downtime. The new product is led by Tokio Marine Kiln (TMK) and supported by other members of Lloyd’s Product Innovation Facility including RenaissanceRe. Broker Howden was also involved in the development of the product. Parametrix Insurance uses a parametric trigger that automatically pays out if a customer’s critical IT services – such as cloud, e-commerce or payment systems – are disrupted. This aims to significantly reduce the time insurers spend assessing a loss or adjusting a claim. Lloyd’s said the product was the “first off-the-shelf parametric IT downtime policy tailored towards SMEs”.