Climate risk insurance platform Yokahu, alongside flood parametric insurtech FloodFlash, is delighted to announce a collaboration with global fintech Vitesse, to significantly accelerate payments from insurers to policyholders to prevent small and medium-sized business (SMEs) from failing after extreme weather events.
Natural disasters through to the end of the third quarter of 2022, for example, are estimated to have caused total economic losses of approximately US$227 billion – of which an estimated US$99 billion was covered by public and private insurers, meaning that insured losses are likely to exceed US$100 billion for the third year in a row according to Aon’s Global Catastrophe Recap report. This represents a significant insurance protection gap of over 50%.
SMEs and vulnerable communities in particular are disproportionately impacted by natural catastrophes with 90% of smaller companies failing within a year unless operations resume within five days of a flood, for instance. However, traditional claims payments from insurers can take weeks or sometimes months in the case of complex claims requiring loss adjusters – time that SMEs and the individuals who work for them do not have.
To address this challenge, fintech Vitesse – which has digital banking distribution in over 170 countries globally – has developed a platform that allows cross border payments for insurers to pay a claim in real-time, and has partnered with FloodFlash and Yokahu to enable this through parametric insurance.
Harnessing Vitesse’s worldwide digital banking channels combined with parametric insurance products reduces claims payment times from months to minutes and ensures that cash goes straight into the hands of those individuals and SMEs worst affected.
Tim McCosh, CEO and Founder of Yokahu, said:
“The partnership with Vitesse means that when a parametric climate risk policy is triggered, we are now able to pay each individual or business covered by the policy, so that they wake up the day after an event happens and the money is there to support them in rebuilding. That’s the power of technology.
The potential for scaling is vastly improved by collaborating with Vitesse, which is present in over 170 countries globally. This brings us a step closer to protecting businesses and individuals who can’t otherwise access affordable insurance in face of natural hazards, and expedite support to victims of disasters around the world.”
Daniel Andrews, Insurance Director of Vitesse, said:
“Our collaborative approach with FloodFlash and Yokahu demonstrates our desire to positively impact change and deliver quicker outcomes for consumers and businesses at a time when they need it most. Whether that be to repair a residential property or to get a business back up and trading. The partnership is a match made in heaven, where third parties can come together to deliver a compelling insured experience from end-to-end.”
Phil McGriskin, CEO and founder of Vitesse, said:
“Seeing the positive impact on lives and small businesses makes me proud that Vitesse is the payments partner of choice for Yokahu and FloodFlash. Technology and insurance coming together to change a customer’s experience is just the beginning….it’s exciting to see what’s next.”
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