Munich Re Supports New Parametric Catastrophe Insurance in UAE

Al Wathba Insurance has launched parametric catastrophe insurance in the UAE with backing from Munich Re through a treaty arranged by Gallagher Re. This type of insurance offers quicker payouts based on predefined criteria, beneficial for the region’s disaster preparedness.

In a significant move for the insurance sector in the United Arab Emirates, Al Wathba Insurance has launched parametric catastrophe insurance. This innovative insurance product is supported by Munich Re, a global powerhouse in reinsurance, through a treaty recently arranged by Gallagher Re.

Parametric insurance provides a streamlined approach to underwriting catastrophe risks. Unlike traditional insurance, which often requires extensive claims processing, parametric policies trigger payouts based on predefined parameters, like weather events or seismic activity. This means faster support for policyholders following disasters, which is crucial in a region prone to extreme weather and other calamities.

The partnership is seen as a vital step for improving resilience against natural disasters in the UAE. As the country faces threats from various environmental phenomena, effective risk management tools are becoming increasingly necessary. Al Wathba’s entry into the parametric insurance market could play a pivotal role in providing timely financial relief to affected individuals and businesses.

Munich Re’s involvement lends credibility and expertise to Al Wathba’s offering. Their extensive experience in the reinsurance market aids local insurers in assessing and managing catastrophe risks more effectively. As the parametric insurance concept gains traction, the potential for further partnerships and product developments seems promising, offering a bright future for disaster preparedness in the region.

Al Wathba Insurance’s rollout of parametric catastrophe insurance in the UAE, backed by Munich Re and brokered by Gallagher Re, marks a notable advancement in risk management strategies. This parametric approach allows for quicker payouts post-disaster, emphasizing the need for efficient support systems in climate and disaster-prone areas. Overall, this partnership highlights a significant step toward enhancing resilience against natural calamities in the region.

Original Source: www.theinsurer.com