Parametric insurance solutions provide security that you won’t find with more conventional insurance products. The distinguishing feature of parametric insurance is that it depends on an external event, for example a hurricane or earthquake. If this insured event occurs, you receive compensation, which is graded according to the severity of the incident.
Parametric cover is an ideal way of protecting yourself against a catastrophe that could affect your business in any number of ways. It’s transparent and payments are made fairly promptly, normally within six weeks. That can make all the difference when you’re trying to ensure your business keeps running as normal.
Such considerations prompted a salt manufacturer located in a cyclone-prone area of Australia to come to us for protection against the threat of natural catastrophes. We collaborated with the company to define where their critical exposure lay and agreed on parametric natural catastrophe cover over a radius of 100 km around the site.
Having identified the key risks, we applied our underwriting expertise to define a parametric index matching adequate insured sums for the client’s needs with different levels of cyclone severity. As a result, we were able to ensure comprehensive protection for the company against those unforeseen weather-related risks that were missing from their off-the-shelf insurance cover.
Swiss Re Corporate Solutions has a strong track record in designing parametric products based on the client’s specific situation. Our technical and insurance experts know how to work with even the most complex risks and ensure the client is adequately covered in the event of a natural catastrophe.
As extreme weather events increase, companies will become more aware of their exposure to this type of risk and will start to review their insurance cover. When that happens, you should talk to us.
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Swiss Re Corporate Solutions hosts and sponsors quarterly drinks event in cooperation with A Word About Wind at our iconic London offices at 30 St Mary Axe. These exclusive networking opportunities enable senior wind energy industry professionals to network with their counterparts working in finance and investment in the London City.Learn more
The annual Airmic conference from 6-8 June provided a vibrant platform to highlight our primary lead capabilities, commitment to the UK regional market and expanding portfolio of commercial insurance offerings.Learn more
When a natural disaster strikes, there is a direct correlation between the conditions experienced locally during the event and the losses suffered on the ground. Parametric insurance products settle on the intensity of the experienced event and are linked to reputable, objective third-party sources, which are used to determine an insurance payout. They are designed to provide catastrophe coverage and complement, but not replace, traditional insurance coverage. Using this structure, parametric insurance payouts are quickly determined, easily measured, and effectively eliminate loss adjustment hasslesLearn more
02 August 2017