New Supplemental Hurricane Insurance Launched

Business Wire

Triggered by Wind Speed, Hurricane PM Can Provide First Dollar Coverage and Rapid Claims Payment for Losses

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- With hurricane season underway, New Paradigm Underwriters (www.npuins.com) is delivering a new, unparalleled risk transfer solution designed to protect property and businesses from the likely losses caused by hurricanes. New Paradigm’s Hurricane PM supplemental windstorm insurance provides affordable first dollar protection for almost any economic loss as a result of a named storm meeting or exceeding a pre-determined sustained wind speed in specific pre-determined locations.

For most hurricanes, insured losses only make up a small fraction of the total losses the storm causes. And the bigger the storm, the bigger the difference between the total loss and what is actually covered. Super Storm Sandy, for example, resulted in an estimated $70 billion in economic loss, but only $25.8 billion was covered by insurance, according to the Insurance Journal. Traditional property insurance policies usually do not cover items that are most likely to be damaged during a hurricane – such as landscaping, seawalls and other outdoor property, due to the coverage exclusions and high deductibles found in most policies. Hurricane PM provides a solution for these gaps in traditional coverage.

Here’s how Hurricane PM works: Through an agreement with Weatherflow Inc., a leading weather measurement provider that also provides data to federal and local government agencies and to research organizations across the country, New Paradigm utilizes exclusive data from WeatherFlow’s unique network of nearly 100 hurricane-hardened wind monitoring stations located in key coastal areas. Stretching from Texas to the U.S. Northeast, the network registers the maximum sustained wind speed during a named storm and the data is collected and certified by Risk Management Solutions (RMS), a world leader in catastrophe risk models. Additionally, Hurricane PM is securely underwritten by one of the world’s premier insurance companies, rated A+ by A.M. Best. (Carrier information available at www.npuins.com)

Hurricane PM can provide coverage for:

Losses below traditional insurance deductibles
Business interruption and lost profits, including lost or reduced business in the days leading up to and following the storm
Losses from items excluded by traditional policies

And instead of having to wait months – or even years – for payment, Hurricane PM strives to facilitate loss payments within days or weeks of the named storm.

“There’s a tremendous disconnect between the true economic needs of recovery for property owners, public entities and businesses versus the protection typically provided to them under traditional insurance policies,” said Evan Glassman, President and CEO of New Paradigm Underwriters. “Hurricane PM is now available to complement the traditional, indemnity-based coverages available in the insurance market to enable a more complete solution to the losses caused by hurricanes.”

New Paradigm was founded by Glassman, a former leading South Florida insurance agent and entrepreneur, and New Paradigm Chairman Bradley Meier, who previously founded Universal Insurance Holdings (NYSE: UVE) whose subsidiary Universal Property & Casualty Insurance Company grew into one of the three leading writers of homeowners insurance policies in Florida over the two decades he led the company as Chairman, CEO, and President prior to leaving in February of 2013. While working as an insurance agent Glassman saw that his clients’ needs were not being met by traditional property insurance policies. He teamed with Meier to start New Paradigm and launched Hurricane PM in 2014.

Industries served by Hurricane PM include, but are not limited to:

condominium/homeowner associations
resorts and hotels
golf courses and country clubs
hospitality
commercial real estate
power and utilities
energy
healthcare, hospitals, assisted living
gaming
municipalities and infrastructure
transportation
schools, colleges and universities

“We are delighted to be partnering with New Paradigm to provide the models and risk insights needed to grow this market” said Hemant Shah, co-founder and CEO, RMS. “Innovative solutions that help the market expand coverage are a top priority for us at RMS."

Buck Lyons, CEO of Weatherflow, said: “Weatherflow has committed our substantial experience and technical expertise, along with a large financial investment, toward reliably and accurately measuring the force of hurricanes at landfall. We are incredibly pleased to now see our technical capabilities used in New Paradigm’s innovative effort to reduce financial risk for property owners and businesses.”

About New Paradigm Underwriters

New Paradigm Underwriters is a Florida-based Managing General Agency and Program Manager. New Paradigm can deploy substantial financial capacity to provide affordable, first dollar catastrophe cover for items that are difficult or impossible to insure traditionally. New Paradigm utilizes proprietary parametric triggers that result in a claims settlement process that can be significantly quicker than traditional insurance. For more information about New Paradigm, please visit www.npuins.com.

IMPORTANT NOTICE

New Paradigm Underwriters, LLC is a Florida based Managing General Agency (license # W149833) and acts as a program manager for insurance companies that may not be licensed in all states. In certain states, Hurricane PM is offered on a non-admitted basis through licensed surplus line brokers.

The delivery of the information contained herein is not intended as a solicitation for the purchase of insurance in any jurisdiction where such solicitation would be unlawful.

The description of Hurricane PM contained herein is for preliminary informational purposes only. The exact coverage provided by Hurricane PM is subject to and governed by the terms and conditions of each policy issued.

For more information about New Paradigm, please visit www.npuins.com.