Global specialty reinsurer Chaucer has partnered with parametric insurtech start-up, Yokahu to launch a new microinsurance product, which will provide cover following hurricane events in the Caribbean.

In a statement, Chaucer said that the new product will “tackle the problem of underinsurance in the region, where the insurance gap is estimated to be $50 billion.”

“Parametric insurance products offer pre-specified pay-outs when a trigger event occurs,” Chaucer said in its statement. “In the event of a hurricane, Yokahu monitors wind speed at customers’ locations and the atmospheric pressure at the centre of a hurricane, this speeds up the rate at which payment can be issued. If these reach pre-agreed limits, payment will be issued to the policyholder within a maximum of 10 days following the hurricane, although often within 24 hours.