Swiss Re Corporate Solutions launches HAIL, a parametric insurance solution for businesses operating in 11 hail-prone U.S. states
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Swiss Re Corporate Solutions (SRCS) expands its parametric offering with the launch of HAIL, a parametric hail insurance cover. The new solution is designed to protect companies in the United States from the financial impact of a significant hail event, such as physical damage, lost revenue due to business interruption, or significant retentions in traditional property policies.
SRCS signed a strategic agreement with CoreLogic®, a leading provider of hail data in the United States, to serve as its data provider. CoreLogic® delivers a proprietary hail verification model to verify the maximum hail size both at the location and in the surrounding area. SRCS will rely on CoreLogic® hail size metrics to determine whether a parametric policy is triggered.
Similar to other parametric solutions offered by SRCS, HAIL combines the customer location data with a pay-out table that outlines policy amounts for reported hail size at said location(s) during an event. In the days after a hailstorm, CoreLogic® provides the necessary hail size data. When a customer has hail damage and the hail size calls for a pay-out under the policy, instead of waiting for a loss evaluation, the payment is released soon thereafter. The customer is free to use the money for any financial loss associated with the event.
"We are excited to bring a parametric HAIL product to market in collaboration with CoreLogic®, a proven leader in the hail verification space," states Cole Mayer, Vice President Innovative Risk Solutions. "The speed of pay-out, transparency in claims adjustment, and flexibility in the use of the funds make this a powerful tool to supplement traditional insurance policies or to buy as a standalone product if traditional coverage is less available."
"Our mission at CoreLogic® is to help people find, buy and protect their properties. We deliver the industry's most precise hail data solution that quantifies risk and verifies event location and severity from the same source data," said Steve Brewer, Executive of Insurance & Spatial at CoreLogic®. "With our hail models, Swiss Re Corporate Solutions can confidently structure hail risk transfer solutions to better protect policyholders, slash cycle times and significantly reduce claims adjusting expense following hailstorms."
HAIL is currently available in 11 states across the U.S.: Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, South Dakota and Texas.