Aon, Floodbase, and Swiss Re have launched a parametric insurance designed to mitigate storm surge losses due to hurricanes. Utilizing meteorological data, this product aims to provide rapid financial assistance to affected entities. It can serve as a standalone solution or complement existing insurance policies, enhancing coverage for storm-related risks.
Aon, Floodbase, and Swiss Re have developed a parametric insurance product to address storm surge risks associated with hurricanes. This innovative solution leverages meteorological data to evaluate storm surges, facilitating prompt financial coverage for affected parties. Cole Mayer of Aon emphasized the importance of storm surge as a significant source of loss for various stakeholders, indicating that this product can either supplement existing insurance or stand alone for comprehensive protection against storm-related exposures.
The need for effective storm surge insurance has been underscored by the increasing impacts of severe weather events. Recent hurricanes have demonstrated that storm surges contribute significantly to overall damage costs. Aon, Floodbase, and Swiss Re’s initiative to launch a parametric insurance product aims to address this gap by providing a rapid and transparent means of protection for corporates and public entities alike.
In summary, the launch of parametric insurance by Aon, Floodbase, and Swiss Re marks a significant advancement in addressing storm surge risks. This product is poised to offer crucial financial support in the aftermath of hurricanes, utilizing data-driven assessments to ensure timely payouts. As severe weather patterns continue to evolve, such innovative products are essential for comprehensive risk management.
Original Source: www.dig-in.com
