FLOOD: Parametric insurance to close the protection gap
Fast, transparent payouts to strengthen flood resilience
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Flooding is one of the few perils affecting almost all economies in the world. Nearly one third of the global population is exposed to flood risk, and, according to recent Swiss Re research, economic losses caused by flooding rank among the highest of all perils almost every year. Despite this, flood-related losses remain largely underinsured, creating a significant protection gap and leaving businesses, public entities and communities facing a long and often challenging path to recovery following an event.
The financial impact of flooding frequently extends well beyond physical damage, including revenue disruption, supply chain interruption, emergency expenses and budget shortfalls. Coverage limitations, including deductibles, sub-limits and exclusions, can further constrain recovery.
Parametric insurance offers a complementary approach.
Designing parametric solutions for complex flood risk
Swiss Re Corporate Solutions provides flood parametric solutions that can sit alongside traditional insurance programmes or offer standalone protection for uninsured or underinsured exposures. By delivering pre-agreed payouts, these solutions help strengthen financial resilience and support a faster return to business as usual.
Flooding is a complex and highly localized peril. No single solution is suitable for all scenarios. Our solutions can cover coastal, fluvial, and/or pluvial flooding, reflecting the diverse nature of flood risk across geographies. Our structures are supported by a range of trusted third-party data sources, including riverine, rainfall and tidal gauges, satellite-derived and modeled flood footprints, as well as climate reanalysis data. This data-driven approach helps ensure that payouts are aligned with events that have a meaningful impact on assets, operations, and financial performance.
Common trigger parameters include:
- Excess precipitation
- Flooded area
- Number of flooded locations
- Water or surge elevation at a gauge or within an area-of-interest
- And more...
Why choose Swiss Re Corporate Solutions?
Our flood parametric solutions are fast, flexible and transparent insurance products that get you cash in hand when you need it the most – in the immediate aftermath of a devastating and disruptive flooding or storm surge event.
Key facts and benefits:
Policy limits
Up to USD 25m per event; larger limits can be explored.
Coverage terms
1–3 years.
Payout
Typically within 30 days following an event.
Broad coverage
Payouts can address direct property damage, excess operational or emergency expenses, lost revenue, budget protection, and other immediate needs.
Proof of loss
Simple confirmation of total loss amount, signed by an officer of the company; no receipts required.
Transparent loss settlement
Trigger conditions are known in advance and payout is determined by physical parameters as provided by an independent third party.
Build resilience against flood risk
Parametric insurance is most effective when tailored to your specific risk profile. Speak with our team to structure a parametric solution that delivers fast, transparent financial protection when it matters most.
Contact: Get in touch with our experts
Megan Linkin
