The pandemic changed the way we look at many things, but nothing more so than healthcare. This huge paradigm shift also catalyzed an increased demand for insurance, while also shifting the ways that we expect insurance to cover our daily lives.
With traditional insurance policies, a rigid set of terms dictate which health incidents are covered and the conditions that need to be met in order to receive a payout. An emerging format of insurance, known as Parametric insurance (PI) is a type of insurance that is becoming the preferred approach to insurance coverage.
Winner of Connect: Market Innovators is an insurance company Raincoat which utilizes this type of insurance in a unique way to provide for modern needs. Let’s take a closer look at how Raincoat has created a breakthrough approach to PI and is helping to provide a more relevant approach to insurance in 2022.
Insuring People For Modern Needs
Connect is a pitch competition that brings together leading media members and entrepreneurs from the world’s most innovative startups. Their latest event was focused on startups who are evolving industry markets to help better business.
Winner Raincoat is a company that is trying to help insurance coverage meet modern needs through the use of PI, which has been heralded as a potential solution to inefficiencies seen through traditional insurance.
Protecting a policyholder against the occurrence of specific events that are within their coverage scope, Raincoat works with insurers to identify the climate-related problems that are faced by clients that they cover.
The company then leverages this information to build a fully packaged, end-to-end climate-related insurance software product. Bringing together a team of engineers, scientists, UX designers, and insurance experts, the company brings together minds that have helped formulate the next generation of insurance policies.
Payments are then issued once this framework is met and are not contingent on a set of irrelevant prerequisites. This is something that is invaluable for people in areas that are prone to natural disasters, getting financial support to people when they truly need it.
A Better Insured Future
Currently, most people don’t have natural disaster coverage but according to a report from the UN, the number of disaster events is projected to reach 560 a year—or 1.5 each day, statistically speaking—by 2030.
Raincoat looks to help patch this disparity and is currently active in corporate projects in Puerto Rico, Jamaica, Mexico, and Colombia. The company is on a mission to help democratize access to financial resilience for people everywhere.
2022 has proven to be a year of innovation, requiring markets to shapeshift in a fraction of the time that they did before. Pitching their company‘s concept alongside other rising entrepreneurs to a panel of noteworthy media, Raincoat showed that their solution is one that can better the insurance industry now and in the future.
Disclosure: This article mentions a client of an Espacio portfolio company.