Insurtech startup Jumpstart announces the official launch of an innovative type of natural disaster insurance in California, initially for earthquakes. Founded in 2015, Jumpstart stated its technology-driven, index-based approach delivers instant signup, affordable coverage, and automatic payout.
Here’s how Jumpstart works:
- Earthquake Insurance: Customers can sign-up online through Jumpstart’s website.
- Fast, Simple Payments: Once a customer responds to confirm some loss or damage, the pre-defined payment amount will be automatically authorized for direct deposit into the customer’s bank account, eliminating a complicated claims process.
- No Hassle: The insurance payments can be used for anything that will help customers bounce back quickly.
- Financial Inclusion: Considering that 62% of Americans have less than $1,000 of savings, millions of Californians may not have the means to begin rebuilding their lives after a disruptive earthquake. At a price of approximately one-tenth that of conventional earthquake insurance, but for a very different product, Jumpstart dramatically increases access to a financial cushion.
Kate Stillwell, founder and CEO of Jumpstart, stated:
“When a big quake strikes my hometown of Oakland, millions of families will be devastated financially – even more so than physically. Our immediate needs might be things we can’t anticipate – childcare expenses, or a place to stay for a month. Surprise costs can throw a wrench in not only your daily routine, but also your long-term financial sustainability. Just-enough money, at just the right time, allows each of us to stay in our communities and be part of the solution.”