Aon, Floodbase, and Swiss Re Unveil Parametric Insurance for Storm Surge Risks
Aon, Floodbase, and Swiss Re have launched a parametric insurance product to address storm surge risks from hurricanes. This collaboration provides clients with flexible options to enhance their insurance coverage. The product utilizes meteorological data to assess potential damages, aiming to facilitate quicker financial recovery from storm surge impacts.
Aon, Floodbase, and Swiss Re have introduced a parametric insurance product specifically designed to address the risks associated with storm surges resulting from hurricanes. This innovative solution leverages meteorological data to evaluate hurricane-related storm surge impacts, providing critical support to corporations and public entities. As stated by Cole Mayer from Aon, the new product aims to complement existing insurance coverage by offering a flexible option tailored to clients’ specific needs for financial protection against storm surge exposures.
The introduction of parametric insurance is a response to the increasing frequency and severity of hurricanes, which have led to crippling financial losses in recent years. In 2024, hurricanes Helene and Milton emerged as the most expensive events for insurers, highlighting the need for more efficient insurance solutions. Aon’s initiative is part of a broader effort to enhance financial resilience for clients in vulnerable regions, allowing faster recovery from natural disasters.
In summary, the collaboration between Aon, Floodbase, and Swiss Re marks a significant advancement in the insurance sector, particularly for those at risk of storm surge damage. By using parametric models and cutting-edge meteorological data, this product not only complements traditional insurance but also offers clients swift and transparent financial relief. This initiative is essential for improving risk management strategies amid rising natural disaster risks.
Original Source: www.dig-in.com
