How Jumpstart Is Transforming Earthquake Insurance

Published Date: 05/20/2024

When we think of earthquake insurance, most of us picture complicated claims, long waits, and uncertain payouts. But what if disaster recovery could be instant, transparent, and based on objective data — no adjusters, no paperwork, no gray areas?



That’s the revolutionary idea behind Jumpstart, a California-based insurtech founded by Kate Stillwell, a structural engineer turned entrepreneur. In a recent Insurance Hour episode, host Karl Susman sat down with Stillwell to discuss how her company is using parametric insurance to transform disaster recovery — and even built an earthquake simulator to show people what it feels like when the ground really starts to move.

What began as an engineer’s curiosity has grown into one of the most innovative insurance products on the West Coast — one that could redefine how we respond to natural disasters in an era of climate change and rising catastrophe losses.

From Engineering to Insurance Innovation

Stillwell’s journey to founding Jumpstart began in an unexpected place — the world of structural engineering.

“I worked with architects to design the skeletons of buildings and make sure they were safe in earthquakes,” she explained. “But I realized safe buildings were only one piece of the puzzle. For true recovery, we also need money flowing quickly back into the system.”

That insight led her to explore how financial systems — not just physical structures — determine the speed of disaster recovery. Her research introduced her to parametric insurance, a concept primarily used in developing countries at the time.

“When I discovered it,” she said, “I thought, this is what we need. Why don’t we have parametric insurance for individuals, especially for earthquakes?”

If farmers in Africa could receive automatic payments after droughts, Stillwell reasoned, Californians could do the same after earthquakes. And with that, Jumpstart was born.

What Is Parametric Insurance?

In traditional insurance, you file a claim after a loss, an adjuster assesses the damage, and eventually you receive a payment — if the loss qualifies.

Parametric insurance flips that process on its head.

At its core, parametric insurance pays out automatically when a predefined parameter — such as earthquake magnitude or wind speed — crosses a specific threshold.

“It’s an automatic lump-sum payment triggered by a data point,” Stillwell explained. “There are no claims adjusters, no arbitration — it either is or it isn’t.”

In Jumpstart’s case, the trigger is seismic data provided by the U.S. Geological Survey (USGS). If ground shaking exceeds a specific level near your location — 30 centimeters per second of ground velocity — the payout is activated.

It’s binary: if the event happens, you get paid. No inspections, no photos, no forms.

How Jumpstart Policies Work

Jumpstart’s policies are intentionally simple.

You choose the amount of coverage you want — for example, $10,000, $20,000, or $50,000.

If an earthquake meets the trigger criteria based on USGS data, you automatically receive your payment via electronic transfer, often within the same day.

That speed is made possible through Jumpstart’s partnership with Snap Refund, a payment processor capable of delivering large lump-sum payouts almost instantly.

As Susman noted during the conversation, same-day insurance payments are practically unheard of in the industry. “That’s amazing,” he said. “To get a check the same day or even the next day — that’s a game-changer.”

“It’s part of the beauty and simplicity of the model,” Stillwell agreed. “Less overhead means fewer costs and faster recovery for customers.”

Why Parametric Insurance Is So Powerful

The innovation behind Jumpstart isn’t just speed — it’s clarity and fairness.

Because the trigger is based entirely on third-party, publicly available data, there’s no subjectivity involved. You either experienced the qualifying earthquake intensity or you didn’t.

That transparency helps build trust in an industry where policyholders often feel frustrated by complicated exclusions or disputed claims.

Parametric insurance also helps close the “protection gap” — the difference between total economic disaster losses and the portion that is actually insured. Traditional earthquake insurance penetration in California remains low, with fewer than one in ten homeowners carrying coverage.

Jumpstart’s affordable, easy-to-understand model makes protection more accessible by eliminating complexity and delays.

No Physical Damage Required for a Payout

One of Jumpstart’s most groundbreaking features is that you don’t need to suffer property damage to receive payment.

“Even if your house isn’t physically broken,” Stillwell explained, “a major earthquake will still cause disruption — lost wages, school closures, power outages, extra expenses. The payout is there to help you recover economically, not just fix things.”

This makes Jumpstart less about rebuilding walls and more about restoring stability — covering hotel bills, replacing lost income, or helping families manage short-term disruption.

The Jumpstart Shaker Earthquake Simulator

During the interview, Susman and Stillwell sat in front of an unusual piece of equipment — a custom-built earthquake simulator known as the Jumpstart Shaker.

Created under the direction of Jumpstart’s former chief marketing officer, Juan Jaramillo, the simulator uses the same hydraulic technology found in lowrider cars to replicate the violent motion of a magnitude-7 earthquake.

“We wanted people to experience what it’s like — not just to feel the shaking, but to understand how our system would respond,” Stillwell said.

Once participants complete the simulation, they receive a mock text message moments later:

“You just experienced a major earthquake. You’re eligible for your $10,000 Jumpstart payment.”

As Susman described during his ride, “We’re laughing now, but this is jarring. You can only imagine what this would feel like if it were real — if you were at home with things flying around.”

Where Jumpstart Is Currently Available

Jumpstart currently operates in:

California
Oregon
Washington

Plans are underway to expand into Nevada, Idaho, and Utah — all states with significant seismic risk.

Stillwell noted that awareness doesn’t always follow geography. Media coverage and public education often drive interest more than location alone. For example, a 2015 New Yorker article about the Cascadia Subduction Zone significantly increased earthquake awareness in the Pacific Northwest.

The Future of Parametric Insurance

While Jumpstart began with earthquake coverage, Stillwell believes parametric insurance will expand far beyond seismic events.

“Parametric insurance fills a totally different mental bucket,” she explained. “It’s not about traditional claims or damage assessment — it’s about data-driven fairness. Anything that can be measured can be insured this way.”

Future applications could include floods, hurricanes, extreme heat, or even cyber events — as long as reliable, measurable triggers exist.

Jumpstart’s acquisition by Neptune Flood in 2021 accelerated this vision. Neptune’s leadership has publicly supported the expansion of parametric solutions to help close coverage gaps tied to climate-related disasters.

Why Parametric Earthquake Insurance Matters

Parametric insurance is not a replacement for traditional earthquake insurance — it’s a complement.

It acts like financial first aid, delivering immediate liquidity when disaster strikes while traditional insurance handles structural losses. This rapid infusion of cash helps families stabilize faster and reduces long-term economic disruption.

As natural disasters become more frequent and more costly, solutions like Jumpstart represent a new layer of financial resilience.

Earthquake Safety and Preparedness

Stillwell closed the conversation with a reminder that no policy replaces personal preparedness.

When shaking begins, follow the official guidance:

“Drop, cover, and hold on.”

Get low, protect your head, and stay in place until the shaking stops. Once it’s safe, check for hazards, contact loved ones — and if you’re a Jumpstart policyholder, expect your automatic payout notification.

A New Era of Earthquake Insurance

Jumpstart represents more than just another insurtech startup. It reflects a fundamental shift in how disaster risk and recovery can work.

By blending engineering, technology, and empathy, Kate Stillwell and her team have demonstrated that insurance doesn’t have to be slow, complicated, or adversarial. It can be simple, objective, and empowering.

In a state where earthquakes are inevitable but financial chaos doesn’t have to be, Jumpstart offers a glimpse at the future of disaster insurance — one where data drives trust and recovery begins at the speed of the event itself.