Amendment One.docx

Amendment to RFI #5400030048 – Parametric Insurance Policy

Questions and Answers:

· Can you confirm that there's no current agreement in place providing these financial services currently?

· In response to your question, that is correct - there are currently no agreements or contracts in place related to this matter. The purpose of this Request for Information (RFI) is to gather information from insurance providers and other organizations with expertise and experience in the development, underwriting, and implementation of parametric insurance policies.

· As stated in the RFI, this request is issued solely for information-gathering and planning purposes. It does not constitute a solicitation for future business, an offer for procurement, or any other current or future contractual or procurement action. Rather, it is intended to collect industry input that will help inform the State's evaluation of parametric insurance as a potential risk management tool.

· What gaps is the state seeking to fill with Parametric Insurance?

· Is there existing coverage for each of these perils? If so, does it exclude costs like emergency services, business interruption, and debris removal? Or is there no coverage at all?

· No there isn’t any existing coverage.

· Is this a standalone coverage, or something to sit effectively next to or on top of existing coverage?

· The purpose of the RFI is to gather information regarding parametric insurance for the state. Whether the state pursues standalone coverage and/or with existing coverage has not been determined.

· Which state agencies or entities would be the intended beneficiaries of policy proceeds? Would they be the same for each peril?

· The purpose of the RFI is to gather information regarding parametric insurance for the state. The beneficiary has yet to be determined if the state decides to pursue a parametric insurance policy.

· Storm surge and hurricane are highly correlated. Would this be something the state has interest in combining, or are they viewing these as separate issues?

· The working group would like to have the ability to look at the policy as separate issues, however, we are open to the policy being combined with both perils.

· Does the state have historical data about events and costs incurred during previous hurricane, storm surge, draught and earthquake events?

· Please refer to the 2023-sc-state-hazard-mitigation-plan.pdf

· This is about the best we can do for the 1886 earthquake. Updated to 2025-26 dollars, the cost is around $197 million. I have not seen any damage costs for the 2014 Edgefield eq (M4.1) or the 1913 Union County eq (M4.3), which are the next largest eqs to have occurred in SC. No costs are associated with these two because there probably wasn’t a lot of damage associated with them.

· Thinking about limits, would the state be interested in higher limits for earthquake and hurricane versus drought, flood, and storm surge? If there is interest in different limits for each peril, what are they?

· The state is investigating the idea of parametric insurance, and we would be happy to accept different policy limits than those listed in the RFI based upon your expertise with the subject.

Questions Flood :

· Are there specific gauges in mind or should we just collect all available gauges in the Pee Dee Watershed ?

· NWS River Focus and Gauges

· Since the flood part only covers PeeDee Watershed, what would be the limit ? Is there any sublimit on more granular regions (based on Total Insured Values (TIV), population, etc. ) within the watershed (smaller basins or administrative regions)?

· The state is willing to look at any combination of limits and further recommendations.

· Are there any past losses or events we should aim to capture, either for the entire watershed or by subregion?

· Please refer to Hurricane Florence and Hurricane Matthew historical storm event data

· Could you please confirm if the intended triggers are strictly based on the river and tidal gauge levels, or if a rainfall component/source should also be factored in?

· Please quote the policy based on river and tidal gauges.

Questions Drought :

· Should the TIV (or total limit) be split proportionately to the county population ? Or is there any guidance on that matter?

· This is an opportunity for the state to conduct research on a parametric insurance policy and the specific details on policy limits and disbursements have not been determined. Any suggestions or recommendations would be useful for the state.