Bounce Earthquake Insurance | Simple | Affordable

Everything you need to know

We're on a mission to give people, businesses and their communities the financial boost they need, when they need it to bounce back from a quake. Questions about how our products work? Read on.

General Information

EQ Cover and conventional earthquake insurance is designed to cover significant loss, but Bounce is different. Our goal is to quickly cover your immediate needs by paying cash upfront within days to cover your additional expenses that result from an earthquake.

By paying cash upfront the Bounce product strengthens your financial resilience and fast tracks your journey towards recovery. A Bounce policy can be a useful complement to traditional insurance because it pays quickly, has no excess or deductible, and covers any extra expense, not just property damage.

Bounce provides parametric earthquake insurance to the New Zealand market. Parametric insurance is defined as cover that is triggered by a parameter i.e. a metric or an index. In our case, a Bounce policy is triggered by a large earthquake at your nearest GeoNet strong motion sensor.

An attribute of a Bounce policy is that it provides very broad cover. As a result you may use the money for any quake related expenses or losses.

  • For households and renters, the funds may be used to cover additional personal and lifestyle costs resulting from an earthquake. This may include the need to undertake emergency repairs (i.e. security, weatherproofing, cleanup), childcare, elder care, pet care, compensate for loss of income, travel costs, accommodation costs, wellbeing support, replacing broken items, and the costs of technical and professional advice. .
  • For businesses, the funds can be used to support the balance sheet during a crisis which is usually when you are short of cash. The policy can be used as an affordable excess deductible buydown (that attaches to first loss) and/or the policy can be used as a flexible option to support business continuity. Business owners can use the funds for any purpose to support their business and their employees recover from an earthquake. For example funds may be used to cover property damage, loss of business/income, increased costs of working (i.e. increased costs due to contract re-negotiations with suppliers and customers, or increased cost of utilities and services, or the costs of staff re-allocation to earthquake recovery duties), damage to supply chains, and a whole range of incidental costs such as relocation expenses, retention of temporary office space, purchasing new equipment, and supporting the wellbeing of employees.

The only things not covered are losses already paid by other insurance, and losses due to bodily harm. Oh, and earthquakes caused by nuclear explosions, cyber attacks, wars and terrorist attacks. (Seriously.) Other than that, you're the one who will best know your needs—the payment is yours to spend as you need to recover.

New Zealand has had 7 significant earthquakes in the past decade. The next Big One in New Zealand isn't a matter of "if" but "when".

So why buy earthquake insurance?

The first reason is to be prudent. While New Zealand has the fourth highest insurance penetration in the world, we still have an underinsurance problem. Most kiwis are not insured for the full cost to replace their house or contents and if disaster strikes this leaves them vulnerable.

The second reason is to get access to cash in a crisis. The Financial Services Council Financial Resilience Survey found that 2 out of 5 New Zealanders said that they would not be able to access $5,000 if something unexpected happened to them.

Finally, our product is designed to provide a quick payment to our customers to help our policy holders with any immediate financial losses or costs resulting from an earthquake. Due to the complexity and sheer scale of a major earthquake, the claims response and timing of settlement from your traditional insurer could take some time to come through.

When there's more money in the local economy, we all recover more quickly.

Bounce offers a couple of options for individuals with sum insured values of $10K and $20K available. We offer a slightly wider range of options for Business customers with sum insured values of $10K, $20K and $50K being available.

We also provide larger business customers with a Commercial Policy option which allows them to buy coverage up to $2m. This option is available through your insurance broker.

Bounce's innovative coverage has a low monthly premium based on your postcode. Powered by GeoNet/ GNS Science data, we have determined the likelihood of a major earthquake affecting you in the future. Locations with higher earthquake risk have higher premiums.

Bounce is a Lloyd’s of London coverholder and holds a binding authority agreement to provide earthquake insurance policies to New Zealand.

The good news for policy holders is that their policy is 100% underwritten at Lloyd’s of London (by the Lloyd’s Syndicate 1840).

Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world.

The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally.

It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale.

And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.

Lloyd’s began with a few courageous entrepreneurs in a coffee shop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.

For information on the financial strength ratings of Lloyd’s, please click here.

For more information on Lloyd’s, visit www.lloyds.com.

As a Coverholder for Lloyd’s of London, Bounce benefits from a partnership with Lloyds through Lloyd’s Syndicate 1840. Lloyd’s syndicates benefit from Lloyd’s brand and ratings, its network of global insurance licences, and its central fund, which is available at the discretion of the Council of Lloyd’s to meet any valid claim that cannot be met by the resources of the member. As all Lloyd’s policies are ultimately backed by this common security, a single market rating can be applied. For information on the financial strength ratings of Lloyd’s, please click here.

There are no deductibles attached to your policy which means that you get to enjoy the full value of your policy entitlement. Each payment is deposited directly into your bank account.

Availability

Yes. Bounce is available to renters . Bounce maybe attractive to renters because the payment covers any extra expense, not just damage to your contents— you may need to find a new home, you may have relocation expenses, or child / pet care costs that you need to pay.

Yes. Bounce is available to homeowners. Bounce maybe attractive to homeowners because it can provide a quick cash infusion after a quake for whatever they need to recover—whether it's emergency property repair, child / pet care costs, or anything else. Bounce will complement your existing insurance by boosting your financial resilience.

Yes, Bounce provides simplified disaster risk finance solutions for businesses. Any business or non-profit can obtain a policy for each location that it owns or operates . A business can choose $10,000, $20,000, or $50,000 of coverage. This supports the balance sheet in a crisis and helps cover the financial gap caused by slow responding business interruption policies and those holding relatively high excesses on traditional material damage policies.

Yes, Bounce provides a commercial policy that provides up to $2m of parametric earthquake insurance for large property owners and business owners. A Bounce commercial policy allows businesses to transfer unwanted earthquake risk and ensure that they have access to cash to support and fast track their recovery. A business can choose any coverage amount up to $2m. This supports the balance sheet in a crisis and helps cover the financial gap caused by slow responding business interruption policies and those holding relatively high excesses on traditional material damage policies. This option is available through your insurance broker.

Yes. You can purchase a Bounce policy for any location that you live in or own.

Yes. The person paying the premium can be different from the person receiving the payment.

Yes.

18 years or older.

Yes. Bounce can be purchased as additional coverage for someone who already has a traditional insurance policy. A Bounce policy can be a valuable complement to conventional house and contents insurance because it pays quickly, has no deductible, and covers any extra expense, not just property damage.

Claims Payments

A Bounce policy is triggered by an earthquake with a shake intensity measure of 20cm per second of ground motion (as measured by the Peak Ground Velocity of the event), with a full payout made when the ground moves by 30cm per second.

Putting this into commonly used terminology. this is equivalent to a high 5 or low 6 magnitude earthquake, and modelling indicates that these parametric trigger points are a good proxy for damage from an earthquake event. Bounce relies on GeoNet to inform it when customers have been impacted by a large earthquake.

Peak Ground Velocity (PGV) measures shaking intensity across impacted regions, as opposed to magnitude which measures the amount of energy released at the focal point of the earthquake. PGV is more accurate measure because it captures the increased shaking intensity across impacted regions. PGV data is also easily accessed from the GeoNet database in near real-time.

We chose a PGV threshold of shaking that's intense enough to cause disruption - enough to "mess life up" and create extra expenses - but still low enough that it's plausible.

The size of an earthquake can be measured in two ways - the amount of energy released (i.e. Magnitude) at the focus point of the quake, and the shaking caused by that energy release at different places around New Zealand (measured as an intensity metric such as Peak Ground Velocity).

  • Magnitude is a measure of the amount of energy released by the earthquake and is a single fixed value for the event. It is a very localised (around the focus point of the quake) measure and does not take into consideration the intensity of shaking in surrounding regions.
  • PGV is an intensity measure of ground movement at the epicenter of the quake in surrounding regions and describes the damage caused by ground shaking on buildings, infrastructure, and land damage.

This is a disaster risk finance solution with the objective of providing cover for financial losses and extra expenses resulting from an earthquake that meets the seismic trigger.

To ensure fast, fair payments, we use Peak Ground Velocity (PGV) intensity data from GeoNet. This data allows us to objectively identify areas where customers are highly likely to have extra costs as the result of a quake.

Payment eligibility is based on shaking intensity. If your location is subject to shaking with a Peak Ground Velocity (PGV) of at least 20 centimetres per second due to the earthquake event, then you are eligible to receive payment.

To ensure responsive cover we apply a stepped payment. If shaking is equal to or greater than 20cm/sec but less than 25cm then we pay 10%, if the shaking is 25cm/sec but less than 30cm then we pay 40%, and if the shaking is 30cm/sec or greater then we pay 100% of sum insured amount.

In New Zealand, our PGV threshold of 20cm/sec corresponds to a high 5 Magnitude earthquake (pending depth and location of the shake), or a Modified Mercalli Intensity (MMI) of VII, and this is catagorised by GeoNet as a "Severe" earthquake. A severe earthquake is where people have difficulty standing, furniture moves, there is substantial damage to objects, and a few weak buildings are damaged.

We recognise that earthquake events are complex systems and can result in a wide range of unexpected outcomes. We have applied a stepped-payout approach to helping you recover from an earthquake event based on the sum insured which is shown on your schedule. The amount that we will pay you following an earthquake will be calculated as follows:

<Insert a payment table image>

Our modelling, alongside hindsight analysis of past events, suggests that a quake with a movement of 20cms per second is a good proxy for damage and is the point where there is likely to be some damage and extra expenses because of the quake.

Analysis of past earthquakes highlights that our policy would have responded and provided comprehensive payouts in all the major earthquakes experienced by New Zealand over the past decade.

Darfield Earthquake, 4 September 2010: This quake occurred at a depth of 11km (shallow) with a magnitude of 7.2, a velocity (PGV) of 94.5cm/s, and a MMI rating of X (Extreme). This caused widespread destruction of buildings, substantial displacement of land, and significant disruption. The shading is red to indicate exceeding 30cm/s, yellow for 25cm/s and green for 20cm/s. Bounce would have supported many customers in this event.

Lyttleton Earthquake, 22 February 2011: This quake occurred at a depth of 6km (shallow) with a magnitude of 6.2, a velocity (PGV) of 97.3cm/s, and MMI rating of VIII (Extreme). This caused widespread destruction of buildings, substantial displacement of land, and significant disruption. The shading is red to indicate exceeding 30cm/s, yellow for 25cm/s and green for 20cm/s. Bounce would have supported many customers in this event.

S.E Christchurch Earthquake, 13 June 2011:This quake occurred at a depth of 7km (shallow) with a magnitude of 6.0, a velocity (PGV) of 95.6cm/s, and an MMI rating of VIII (Extreme). This caused further destruction of buildings, some displacement of land, and further disruption. The shading is red to indicate exceeding 30cm/s, yellow for 25cm/s and green for 20cm/s. Bounce would have supported many customers in this event.

East Christchurch Earthquake, 23 December 2011:This quake occurred at a depth of 6km (shallow) with a magnitude of 5.8, a velocity (PGV) of 49.6cm/s, and an MMI rating of VIII (Extreme). The shading is red to indicate exceeding 30cm/s, yellow for 25cm/s and green for 20cm/s. Bounce would have supported many customers in this event.

The Kaikoura Earthquake, 13 November 2016:This quake occurred at a depth of 15km (shallow) with a magnitude of 7.8, a velocity (PGV) of 101.7cm/s, and an MMI rating of IX (Extreme). This caused widespread destruction of buildings, substantial displacement of land, and significant disruption through the Canterbury region, Marlborough region, and the Wellington region. The shading is red to indicate exceeding 30cm/s, yellow for 25cm/s and green for 20cm/s. Bounce would have supported many customers in this event.

The map below provides a more granular view of policy response in Wellington region as a result of the Kaikoura Earthquake.

The claim management process is activated by a notification from GeoNet strong motion sensors that the ground shaking meets the trigger threshold for a claim payment.

After an earthquake occurs, if your location experiences the triggering shaking intensity, we send you a text message and/or an email that tells you that “You’re eligible to a claim payment”.

To receive a payment, you must complete the Loss Declaration procedure by responding to text messages initiated by us or by contacting us directly. The Loss Declaration confirms that you have been impacted by the quake. To facilitate the Loss Declaration process, we will send you a text message to confirm that:

  1. You own, reside or work at the insured address; and
  2. You have suffered a covered loss as a result of the earthquake; and
  3. To the best of your knowledge and belief the covered loss will be at least equal to the amount that we pay you.

After you respond affirmatively, we initiate payment. We use text messaging because it's likely to be the first form of communication to start working after a disaster.

In reality it is highly unlikely that you will have a good sense of the impact of an earthquake within the first few days of the event. In this situation we encourage you to complete the Loss Declaration knowing that it is very likely that you will incur unexpected expenses along the way.

However, if you are unable to complete the Loss Declaration because you do not believe that your loss and extra expenses will be equal to or more than the amount that we will pay you then please contact Bounce by emailing us (support@bounceinsurance.co.nz) or calling us (0508 268623). We will arrange a partial payment of the amount that you expect to incur based on your knowledge and belief at the time. If your loss turns out to be more, then we will simply make additional payments up to the maximum of your entitlement.

No. When you are eligible for payment and respond affirmatively to our Loss Confirmation process that to the best of your knowledge and belief you expect your loss and additional expenses to be at least the value of our payment to you, then we authorise the payment.

We do request that you keep any relevant receipts as evidence that funds were spent on your earthquake recovery.

Earthquakes big enough to trigger payments will also be big enough to cause all sorts of unanticipated expenses, some of which won't become apparent until much later.

The policy (and the cover amount) has not been designed to insure people against all losses they may suffer due to an earthquake. Based on our statistical analysis and modelling, we chose a payment amount that's typically a fraction of what most people will need.

However, if your expenses and losses are less than the amount that we have paid you then please contact us to discuss.

Your traditional house and contents insurance policies are designed to cover significant loss, but Bounce is different. The Bounce insurance product is designed to support your financial resilience by assisting you with immediate cash flow for those expenses which you are unable to recover from other insurance policies. A Bounce cash payment following an insured earthquake event is paid in days and helps with any immediate financial losses or additional expenses that you may have as you start your journey towards recovery. A Bounce policy does not replace or duplicate the cover provided by other policies, but rather can be a useful complement to traditional insurance because it pays quickly, has no excess or deductible, and covers any extra expense, not just property damage.

You can also provide your affirmative response by calling us (0508 268623); emailing us (support@bounceinsurance.co.nz); by logging into your account; or through Facebook messenger.

Bounce is committed to complying with the Fair Insurance Code as published by the Insurance Council of New Zealand. This means we will:

  • provide insurance contracts which are understandable and show the legal rights and obligations of both us and you;
  • explain the meaning of legal or technical words or phrases;
  • explain the special meanings of words or phrases as they apply in the policy;
  • manage claims quickly, fairly and transparently;
  • clearly explain the reason(s) why a claim has been declined; and
  • provide you with a written summary of our complaints procedure as soon as disputes arise and advise you how to lodge a complaint and tell you about the Insurance and Financial Services Ombudsman Scheme.

You can access a copy of the code here.

  • Payment eligibility is based on shaking intensity.
  • Specifically, if your location is subject to shaking with a Peak Ground Velocity (PGV) of at least 20 centimetres per second due to the earthquake event, as determined on the basis of data from the nearest GeoNet strong motion sensor, then you are eligible to file a claim.
  • Data used to define payment eligibility are as reported by GeoNet usually within 24 hours after occurrence.
  • You are entitled to claim for more than one earthquake event which may occur during the policy period, but the absolute maximum we will pay you for all earthquake events is the Sum Insured shown on your schedule.

See full policy for detailed terms.

Our Team

Bounce was founded in 2020 by Paul Barton. Paul has a began in insurance and was the Chief Risk Officer at Medical Assurance Society (MAS) and has spent many years working with claim teams and customers impacted by earthquake events in New Zealand.

Paul saw the financial hardship and stress that New Zealanders faced after the Canterbury Earthquake Series and after Kaikoura. This prompted Paul to think about a smarter way for insurance to be more responsive to the immediate financial needs of New Zealanders after an earthquake. Bounce is based on the belief that quick recovery is key to mitigate financial hardship and minimise emotional stress for individuals and their families, and the wider community. From this belief Bounce was formed with a focus on promoting individual, and community recovery, by paying claims within days of an earthquake event.

Today we are a small team of highly committed specialists.

Bounce’s mission is "to increase economic stimulus following an earthquake.” Basically, we're trying to get more money flowing into our communities when we need it most.

Our sole purpose is to pay cash upfront to cover your additional expenses that result from an earthquake.

We created Bounce for New Zealanders impacted by an earthquake because we saw that there is often a lag between the earthquake event and when the insurance payout is made and this creates financial hardship and emotional stress.

Support

See full policy for detailed terms.

We email your electronic policy when you sign up and again each year. In addition, it's available in your account status. Simplylog in. From there, you can print out a PDF if you need a paper copy.

Yes, log in and navigate to Your Account page to update information.

Please note, that changing the insured location may result in a new policy that replaces the current policy. For a new location, the new premium amount may differ.

Unless you tell us otherwise, your policy will renew with no action required from you. We will send you an annual reminder that your policy will renew.

You can cancel at any time with no penalty. Simply call us at 0508 268623 or click on the Chat box at the bottom right corner of this page. We will cancel your policy that day and issue a pro-rated refund.

Click on the Chat box at the bottom right corner of this page, or email us at support@bounceinsurance.co.nz and we'll respond quickly.

We use the strongest browser encryption available, and store all of our data on servers in a secure facility.

We protect the privacy of your information and will never share your data with any third party without your permission. For more information, please review our privacy policy.

After Canterbury it has been tough getting insurance. Not with Bounce, we were signed up in 5 minutes flat.

Megan
MeganChristchurchCustomer since 2021