- The insurer uses third-party verified windspeed data as a trigger for coverage in its signature parametric STORM solution
- Launched in the U.S. and the Caribbean, STORM will now be available in all tropical cyclone-exposed areas worldwide
- Additional geographic areas for STORM will use data from Reask via its Metryc product, designed specifically for index-based policies
Zurich, Switzerland (Aug. 30, 2021) – Swiss Re Corporate Solutions has teamed up with Reask, a tropical cyclone risk analytics firm, to expand its parametric windstorm solution, STORM. The insurer will leverage Reask’s advanced technological windspeed data to provide tropical cyclone coverage to corporate and public entities exposed to the peril.
Initially launched in hurricane-prone areas of the U.S. and the Caribbean, STORM uses the highest reported wind speed at defined locations as a trigger. It is an insurance tool that pays out quickly and is often used to address traditional marketplace limitations or as a standalone risk transfer option. Similar to other Corporate Solutions parametric products, STORM typically pays out within days and the customer is free to use the money for any financial loss associated with the event.
Reask uses its globally connected framework and machine learning to provide natural catastrophe risk models for the insurance industry. Metryc, Reask’s tropical cyclone risk modelling product, is built to address the specific requirements of nat cat parametric insurance contracts. In areas outside of the U.S. and the Caribbean, STORM will use Metryc to determine whether a policy is triggered.
“Tropical cyclones continue to pose a major risk,” says Martin Hotz, Head Parametric Nat Cat at Swiss Re Corporate Solutions. “Thanks to our collaboration with Reask, organizations around the world will have access to broader coverage, flexible use of funds and a speedier recovery with STORM.”
“Parametric solutions such as STORM help reduce the insurance protection gap,” says Thomas Loridan, CEO at Reask. “Until now, a lack of reliable observations in many tropical cyclone-affected areas have limited the deployment of such solutions beyond established markets. Our Metryc product provides complete global coverage, augmenting scarcely available observations through predictive modelling.”
STORM will be available to organizations around the world in September 2021. For more information, visit corporatesolutions.swissre.com/STORM.
About Swiss Re
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally. For more information, please visit www.swissre.com.
SOURCE: Swiss ReTags: hurricanes, Natural Catastrophes, parametric insurance, partnership, severe weather, Swiss Re