Swiss Re Corporate Solutions has teamed up with tropical cyclone risk analytics firm Reask, 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 risk.

Initially launched in hurricane-prone areas of the US and the Caribbean, the platform uses the highest reported wind speed at defined locations as a trigger. It is designed as an insurance tool that pays out quickly and is often used to address traditional marketplace limitations or as a standalone risk transfer option.

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 US 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, organisations around the world will have access to broader coverage, flexible use of funds and a speedier recovery with Storm.”

Parametric solutions such as Storm - which will be available from September 2021 - 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 has limited the deployment of such solutions beyond established markets. Our Metryc product provides complete global coverage, augmenting scarcely available observations through predictive modelling.”

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