Aon, Floodbase, and Swiss Re Introduce Parametric Insurance for…

Aon, Floodbase, and Swiss Re have launched a parametric insurance product for hurricane-related storm surges, utilizing meteorological data for assessment. This solution aims to provide efficient cover for corporations and public entities, addressing significant financial risks from storm surge events. The product is designed as a standalone option or as a complement to existing insurance policies.

Aon, Floodbase, and Swiss Re have introduced a parametric insurance product aimed at mitigating financial losses due to hurricane-related storm surges. This innovative coverage assesses storm surge risks by using real-time meteorological data, providing an alternative or complement to traditional insurance policies. Cole Mayer from Aon highlights that storm surge can severely affect stakeholders, prompting the development of this targeted solution for comprehensive coverage.

The insurance industry continues to adapt to the increasing frequency and severity of natural disasters, particularly hurricanes. Parametric insurance provides a mechanism for faster claims processing and tailored coverage, making it essential for businesses and public entities exposed to storm surge risks. Recent storms, such as Hurricanes Helene and Milton, have underscored the need for effective financial protection against such events, impacting a wide geographical area.

The launch of parametric storm surge insurance by Aon, Floodbase, and Swiss Re is a significant advancement in risk management for hurricane-related events. By utilizing meteorological data, this coverage offers quicker and more efficient protection against the financial impacts of storm surges, catering specifically to the needs of exposed clients. This collaboration reflects a proactive approach to enhancing insurance solutions amidst rising climate risks.

Original Source: www.dig-in.com