Aegis London launches active assailant parametric product

A parametric insurance product that protects small businesses against economic losses following a shooting or malicious incident within 250 metres of their premises has been launched by Lloyd’s insurer Aegis London. This is the first policy of its type to be launched by the syndicate.

Intended initially for SME businesses in the Dallas area for portfolios of up to 10 properties, INSDEX Active Response, is distributed through partner brokers and in time will be available through Aegis London’s Opal platform.

Calum Williams (pictured), terrorism underwriter, Aegis London said: “SMEs are typically the most financially exposed to this type of crime. They are often uninsured and can be faced with substantial legal and medical costs if victims or their families make a claim against them after a violent incident on or near their property. In addition, if their reputation suffers or trading is reduced following an event of this kind, many will face an insurance gap, particularly as some intangible assets are difficult to claim for under traditional insurance policies. Even those with insurance often have high deductibles because events of this nature have become so commonplace. This policy provides clarity of cover, but most importantly pays out quickly after an event significantly reducing the expected adverse financial consequences. This means that insureds are given much needed liquidity at a time of need.”

Shooting events are estimated to cost the US economy US$229bn a year according to a 2019 Joint Economic Committee Report. There have been 520 shootings in Dallas in the calendar year ended 31st May. In the same period last year there were 430 shootings.

Depending on how the product performs in Dallas, AEGIS London also hopes to roll it out to other states with California and Florida the next on the list, locations which also suffer a high number of shootings and where there is sufficient history of publicly-available police data to enable accurate historical loss analysis and pricing.

The new product was developed in conjunction with Lloyd’s Lab cohort, Skyline Partners. Cofounders Laurent Sabatié and Gethin Jones said: “This parametric insurance product utilises independent and trusted third party data available from the police department’s incident database. The availability of this data has enabled us to create a parametric index and model the risk and price the product at 60 metres (200 feet) resolution for the whole of Dallas utilising data science and actuarial techniques. We also monitor the claims and provide notifications to brokers that an insured event has occurred as soon as the data is made available from the police department."

    Share Story:

Recent Stories

Cyber physical risks
Property damage as a consequence of cyber attack is often excluded from standard property policies, but as the industrial internet of things expands, so too do the risks. This podcast examines the evolving threat landscape. Published October 2021

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021