Paying Faster When It Matters Most: How LSI and Hausch Accelerated Wildfire Claims Using Vitesse

In January 2025, a fast-moving wildfire tore through the Palisades region of California, triggering multiple high-value property claims within days.

LSI, the coverholder responsible for underwriting and claims oversight, and Hausch & Company, the appointed global TPA managing claims across multiple capacity providers, needed to get money to policyholders quickly during a CAT event.

For claims supported by Vitesse’s Faster Claims Payments (FCP), LSI-Hausch team was able to issue advance payments within days of FNOL—before final settlement and without waiting on cash calls or manual funding approvals.

For comparable claims relying on traditional loss-funding structures, payments were dependent on cash-call cycles that typically required two to three weeks for funds to arrive before payments could be released.

The difference was the funding structure. Where FCP was in place, payments moved as soon as claims were approved. Where traditional funding applied, payment timing depended on cash-call cycles.

In one comparable claim funded through traditional cash calls, a second cash call was not reported until March. A third was not received and paid until late April, even though the loss had already been agreed.

The Palisades wildfire reinforced a familiar CAT reality: access to funds determines how quickly policyholders are paid.

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The Event: Palisades Wildfire, January 2025

The Palisades wildfire ignited in early January 2025, displacing families and destroying homes across the region.

LSI oversaw policy issuance and claim management, while Hausch executed payment operations and coordinated directly with insureds. As inspections began, it quickly became clear that policyholders needed funds immediately to secure housing and begin recovery.

Within days:

• Claims were reported and inspected
• Losses were agreed
• Advance payments were approved and provided before final settlement

While claims handling remained consistent, the use of a modern funding infrastructure enabled payments to move immediately once losses were agreed.

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The Challenge: Structural CAT Funding Bottlenecks

CAT events expose a structural weakness in traditional reinsurance funding models.

Even after losses are agreed and operational teams are ready to pay, cash-call cycles of 14–21+ days delay urgently needed payments, at precisely the moment policyholders need liquidity most.

In prior wildfire years, including 2022 and 2023, Hausch executed claims promptly, but payments were delayed by 14–21 days or more due to traditional cash-call processes outside of their control. Each payment required multiple steps:

• Cash-call preparation
• Approvals across parties
• Funds wired into loss accounts
• Manual reconciliation before payment

Advance payments were sometimes used to keep claims moving, but this added complexity by depleting existing loss funds rapidly and increased operational burden during already high-pressure events.

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The Solution: Faster Claims Payments (FCP) on the Vitesse Network

For capacity providers operating on the Vitesse platform, LSI-Hausch team had access to prefunded FCP infrastructure. Once claims were approved, funds were immediately available—removing the need to wait for external cash-call cycles.

With FCP:

• Funds were available as soon as claims were approved
• Advance payments were issued within days of loss notification
• Payments were made ahead of final settlement
• Claims teams stayed focused on insureds, not funding logistics

“This was a huge win for the insureds. We were able to pay them quickly without any of the friction we’ve faced in prior years. This model just works.”
— Van Miehe, Director of External Finance, Hausch & Company

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Payment Limits: Built-In Controls Without the Bottlenecks

Payment limits are a built-in control within the Vitesse platform that enable Managing Agents (MAs) to maintain oversight of payments issued by Delegated Claims Administrators (DCAs). DCAs can process payments efficiently within their authorised thresholds, while payments above this limit are automatically routed for MA review and approval.

This approach mirrors the familiar control structure used in the traditional loss fund model, where MAs approve cash call requests from DCAs. At the same time, the Vitesse platform streamlines the process and accelerates access to funds, reducing operational friction while maintaining the governance and oversight that Managing Agents expect.

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Real-World Timeline: FCP vs. Traditional Cash Calls

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The Outcome: Faster Payments, Fewer Escalations, Better Resilience

Using the Vitesse network, Hausch was able to:

• Deliver funds to policyholders quickly during a CAT event
• Reduce escalation risk
• Ease operational strain on claims and finance teams

Most importantly, this case reinforced that CAT readiness depends as much on payment infrastructure as it does on underwriting and claims expertise.

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Why This Matters for Insurers

CAT events are becoming more frequent and more severe. In these moments, policyholders care about one thing above all else: how quickly they are paid.

Claims modernization without funding modernization leaves a critical gap.

CAT resilience requires capital positioned in advance of the event.