Introducing Jumpstart: A New Hassle-Free Approach to Natural Disaster Recovery
Bill Sinn | October 02, 2018
Using its technology, Jumpstart is the first parametric InsurTech company in the U.S. for earthquakes and aims to provide a broad base of customers with affordable, hassle-free coverage to help families and individuals bounce back after an earthquake of a pre-specified intensity, with fast payment initiated by text message.
Even though the US Geological Survey reports a 99% chance of a magnitude 6.7+ earthquake somewhere in California within the next 30 years, only about 11 percent of California households in 2016 purchased earthquake insurance, which is not required by residential mortgage lenders. As a result, only a fraction of needed rebuild funds are likely to flow into post-quake California.
Jumpstart intends to upend this status quo by appealing to significantly more people than those who currently buy earthquake coverage. To do so, Jumpstart has created an unorthodox product that keeps what people love about insurance – receiving money when it’s needed – while eliminating what people hate – high costs and complicated claims processes.
Here’s how Jumpstart works:
- Earthquake Insurance: Customers can sign-up online through Jumpstart’s website. At the time of launch, insurance policies will be underwritten and administered by AmWINS Group, Inc. and the insurer will be The Channel Syndicate 2015 at Lloyd’s (of London) – a non-U.S. surplus lines insurer qualified to accept insurance placements from California surplus line brokers for California insureds.
- Fast, Simple Payments: After an earthquake of a pre-specified intensity as measured by the United States Geological Survey, Jumpstart will automatically reach out to each customer in the impacted region via text message. Once a customer responds to confirm some loss or damage, the pre-defined payment amount will be automatically authorized for direct deposit into the customer’s bank account, eliminating a complicated claims process.
- No Hassle: The insurance payments can be used for anything that will help customers bounce back quickly. In a disruptive earthquake, everyone experiences unanticipated expenses, regardless of the presence or extent of physical damage. Payments will provide a financial jumpstart to begin the process of recovery.
- Financial Inclusion: Considering that 62% of Americans have less than $1,000 of savings, millions of Californians may not have the means to begin rebuilding their lives after a disruptive earthquake. At a price of approximately one-tenth that of conventional earthquake insurance, but for a very different product, Jumpstart dramatically increases access to a financial cushion.
“As a structural engineer, disaster resilience is my life’s work, but after Hurricane Katrina, I realized that resilience means more than safe buildings,” said Kate Stillwell, founder and CEO of Jumpstart. “When a big quake strikes my hometown of Oakland, millions of families will be devastated financially – even more so than physically. Our immediate needs might be things we can’t anticipate – childcare expenses, or a place to stay for a month. Surprise costs can throw a wrench in not only your daily routine, but also your long-term financial sustainability. Just-enough money, at just the right time, allows each of us to stay in our communities and be part of the solution.”
Policies like Jumpstart’s are known as “parametric,” since payments are linked to the occurrence of a pre-specified event or data measurement, i.e. “parameter.”
Says Will Thorne, Innovation Leader at the Channel Syndicate, “Jumpstart’s proposition offers something new to consumers who will likely need financial help after a potentially life-changing earthquake event. We are delighted to be working with Jumpstart and AmWINS to facilitate the delivery of Jumpstart’s innovative product in California.”
“The current protection gap – the amount of economic loss that isn’t insured – impacts the entire market and plagues the global economy,” said Trevor Maynard, Head of Innovation at Lloyd’s. “Jumpstart’s parametric model could play a significant role to help close this gap and build resilience of local communities.”
Although Jumpstart’s first offering will be for earthquakes in California, it has plans to roll out the product in other states and to expand to other types of natural disasters.
For more information and to sign up, visit www.jumpstartrecovery.com.
- Electronic Chat with Larissa Tosch
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Steve Kronsnoble Joins CastleBay Companies as Insurance Principal Consultant
- Electronic Chat with Larissa Tosch
- Instec Expands Insurance Expertise with Hiring of Industry Veteran CJ Lotter
- Group Insurers Investing in Tech to Drive Customer Acquisition and Retention, Says Novarica
- RLI Selects DataCubes to Optimize Certain Underwriting Processes
- Reinsurance Software WebXL Version 4.3 Released by Prima Solutions-Effisoft Group
- Direct Online Could Grow to 12% of Small Commercial Insurance Market by 2023, Says Novarica
- David Fisher joins FRISS board as non-executive member
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
This month, the ITA celebrates Insurance Careers Month and encourages carriers, brokers, agents and our industry associations to plan their own... READ MORE
Customization in the general sense has a very positive connotation. However, in the world of software systems, customization quite often falls short... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE