Swiss Re launches parametric hail insurance solution in the U.S.
Swiss Re Corporate Solutions launches HAIL, a parametric insurance solution, for businesses operating in 11 hail-prone U.S. states
Zurich, Switzerland (May 27, 2020) – Swiss Re Corporate Solutions (SRCS) expands its parametric offering with the launch of HAIL, a parametric hail insurance cover. The new solution is designed to protect companies in the United States from the financial impact of a significant hail event, such as physical damage, lost revenue due to business interruption, or significant retentions in traditional property policies.
SRCS signed a strategic agreement with CoreLogic®, a leading provider of hail data in the United States, to serve as its data provider. CoreLogic® delivers a proprietary hail verification model to verify the maximum hail size both at the location and in the surrounding area. SRCS will rely on CoreLogic® hail size metrics to determine whether a parametric policy is triggered.
Similar to other parametric solutions offered by SRCS, HAIL combines the customer location data with a pay-out table that outlines policy amounts for reported hail size at said location(s) during an event. In the days after a hailstorm, CoreLogic® provides the necessary hail size data. When a customer has hail damage and the hail size calls for a pay-out under the policy, instead of waiting for a loss evaluation, the payment is released soon thereafter. The customer is free to use the money for any financial loss associated with the event.
“We are excited to bring a parametric HAIL product to market in collaboration with CoreLogic®, a proven leader in the hail verification space,” states Cole Mayer, Vice President Innovative Risk Solutions. “The speed of pay-out, transparency in claims adjustment, and flexibility in the use of the funds make this a powerful tool to supplement traditional insurance policies or to buy as a standalone product if traditional coverage is less available.”
“Our mission at CoreLogic® is to help people find, buy and protect their properties. We deliver the industry’s most precise hail data solution that quantifies risk and verifies event location and severity from the same source data,” said Steve Brewer, Executive of Insurance & Spatial at CoreLogic®. “With our hail models, Swiss Re Corporate Solutions can confidently structure hail risk transfer solutions to better protect policyholders, slash cycle times and significantly reduce claims adjusting expense following hailstorms.”
HAIL is currently available in 11 states across the U.S.: Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Montana, Nebraska, Oklahoma, South Dakota and Texas.
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. It is organised into three Business Units, each with a distinct strategy and set of objectives contributing to the Group’s overall mission. For more information, please visit www.swissre.com.
SOURCE: Swiss Re
Tags: launch, parametric insurance, severe weather, Swiss Re
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