Specialist reinsurance broker Miller has announced a new partnership with Specialty Program Group Canada and NormanMax Syndicate 3939 to create a binder granting SPG Canada full underwriting authority for a parametric earthquake risk solution across British Columbia.

The binder will enable commercial property owners in the province to manage high earthquake deductibles. Traditional earthquake insurance in British Columbia has been facing rising deductibles and complex claims processes.

The parametric cover responds when a predefined seismic shaking intensity is recorded, using data from independent third-party sources. Once the trigger threshold is met, payment is made after a proof of loss, without the need for a full traditional loss-adjustment or prolonged negotiation.

Cameron Copeland, president and CEO of SPG Canada, said: “We are pleased to offer commercial businesses, particularly those in British Columbia, a new option to safeguard their financial stability and assets in the event of an earthquake. Historically, insureds have had limited choices to protect and mitigate earthquake exposure. Parametric insurance provides a fresh, innovative approach to securing peace of mind. Being the first organisation to bring this solution to the Canadian commercial insurance market reflects our commitment to innovation and to delivering best-in-class protection for our clients.”

Brad Meier, chairman, president and CEO at NormanMax, added: “NormanMax is pleased to partner with Miller and SPG Canada to bring this innovative program to the British Columbia market. As the first-ever syndicate at Lloyd’s of London dedicated to parametric natural catastrophe solutions, NormanMax Syndicate 3939 shares the goals of Miller and SPG Canada in bringing fully transparent, rapidly settling coverage options to the Canadian Market supported by Lloyd’s security and licensing.”

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