NormanMax launches residential parametric hurricane cover

Parametric specialist NormanMax Insurance Solutions has expanded its offering beyond commercial insurance and reinsurance as it launches a parametric hurricane product for US consumers, Parametric Insurer can reveal.

The residential hurricane cover is being offered as a standalone product through the E&S market, with an initial focus on high-value properties. NormanMax is also understood to be expanding its network to add more agencies with strong presences in personal lines, as well as working with existing partners to distribute the product.

It is available in the same areas as NormanMax’s existing commercial program. The company expects particular interest in Florida and throughout the Gulf Coast after 2024’s active hurricane season, while high-value coastal properties in the northeast US could be another target market for the coverage.

As with most parametric natural catastrophe products, it is not intended to replace traditional coverage, but complement it – for example by filling deductibles, providing additional cover above a sublimit or covering hard-to-insure exposures.

While this launch is a standalone parametric product, NormanMax says it can work with insurers to integrate parametric solutions into traditional programs, a market that it believes will grow in the coming years.

The program will offer multiple triggers, which could include a cat-in-circle approach, wind speed recordings from anemometers and modelled wind fields.

Policies will be underwritten by NormanMax Syndicate 3939, which started underwriting in May as the first Lloyd’s syndicate dedicated to parametric natural catastrophe risks. Homeowners will be able to select limits of up to $10mn.

Over time, the syndicate anticipates working with other (re)insurers to expand the program’s capacity.

“We’re proud to launch Residential Hurricane PM, offering expansive coverage that directly addresses the natural disaster protection gap for homeowners,” said Mark Groenheide, chief revenue officer at NormanMax Insurance Solutions.

“This parametric solution can assist in providing consumers with the prompt financial resilience they need when hurricanes strike.”