Swiss Re Corporate Solutions expands parametric tropical cyclone insurance with risk data provider Reask
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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 in September 2021.