Aon, in partnership with Floodbase and Swiss Re, has launched a parametric insurance product designed to cover hurricane-related storm surge risks. This insurance utilizes meteorological data and aims to provide rapid payment in the face of disaster, addressing significant financial losses stemming from storm surges. It can be used as a standalone product or alongside traditional insurance policies.
Aon, Floodbase, and Swiss Re have jointly launched a parametric insurance product targeting storm surge risks associated with hurricanes. This innovative solution leverages meteorological data to evaluate potential storm surge impacts. According to Cole Mayer of Aon, this insurance can enhance existing coverage for businesses and public entities affected by storm surge disasters.
The increasing severity of hurricanes poses significant financial risks due to storm surges, which are rising tides caused by storm winds. Traditional insurance often falls short in times of rapidly accumulating losses due to extreme weather events. The new parametric insurance offers a timely, data-driven solution to address hurricane-related storm surge damages efficiently, allowing clients to secure extensive protection against such natural disasters.
The collaboration between Aon, Floodbase, and Swiss Re marks a significant advancement in managing storm surge risk via parametric insurance. By utilizing real-time meteorological data, this product provides quick financial relief and complements existing policies, which enhances the overall risk management strategies for corporations and public organizations.
Original Source: www.dig-in.com
