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Weathering the storm with parametric insurance from Generali GC&C

For businesses of all sizes, navigating the unpredictable world of weather and natural hazards is a constant challenge. From floods and droughts to windstorms and earthquakes, these events can disrupt operations, damage property and significantly impact companies’ bottom line. Traditional insurance can offer some protection but handling complex claims processes after a disaster can compound the challenges.

Now, in Generali Global Corporate and Commercial’s sixth year as a leading provider of parametric insurance solutions in the UK and worldwide, we’ve been revolutionising how businesses approach weather and natural hazard risk management. We offer a streamlined, data-driven approach that puts you back in control, ensuring financial security when disaster strikes.

What is parametric insurance?

Unlike traditional insurance, which relies on claims adjusters assessing damage after an event, parametric insurance triggers payouts based on pre-defined parameters linked to a specific weather or natural hazard event.

A parametric policy has three key components:

  • An index, which is the measurement of a hazardous peril. For flood insurance, the index would be a water level measurement at a specific location over a number of years to obtain an average water level height.
  • A trigger level, which is a defined value of the index where the peril causes harm or damage. Continuing with a flood example, a trigger level would be defined using the historical data of the water level at a specific location and identifying a height at which the water level causes a flood event.
  • A payout structure, designed to meet the clients’ financial needs, is a predefined payout mechanism that determines the size of the payout based on the severity of the triggering event.

By focusing on objective data rather than subjective claims assessments, parametric insurance offers several key advantages:

  • Faster payouts: We’ve delivered eight-figure sums to clients within a week of a triggering event, minimising financial disruption.
  • Transparency and predictability: Pre-defined parameters and payouts provide complete clarity about your insurance.
  • Reduced disputes: Objective data eliminates room for claim denials or disagreements.
  • Greater flexibility: All our coverage is tailored to specific weather and natural hazard risks your business faces, including protecting your supply chain even if your own property isn’t directly impacted.

These are many examples where our parametric solutions can be used, and a few of ours include:

  • Temperature: Extreme cold or heat impacting infrastructure or production.
  • Wind Speed: Wind gusts exceeding a specific threshold causing property damage or business disruption.
  • Seismic Activity: Earthquakes reaching a particular magnitude or shaking intensity, safeguarding construction projects or critical infrastructure.
  • Flood: Increased water levels caused by excess of rain or high river levels, causing damage or business interruption.

Why choose Generali Global Corporate and Commercial?

As part of one of the largest global insurance and asset management providers, Generali Global Corporate and Commercial is a trusted partner for businesses seeking effective solutions against weather and natural hazard risks. Here’s what sets us apart:

  • Experienced team: Our team comprises risk experts, insurance professionals, and data scientists, all backed up by the leading modelling and underwriting talents of the 200-strong dedicated parametric team at Descartes Underwriting, ensuring you receive unmatched guidance and support.
  • Global network: We leverage both our and Descartes Underwriting’s global reach, plus a global network of weather and natural hazard data providers to guarantee accurate and reliable trigger mechanisms.
  • Tailored solutions: We specialise in complex covers with multiple perils and triggers, all while maintaining a simple and short wording that parametric insurance requires.
  • High coverage limits: Our parametric insurance solutions offer coverage limits of up to £60m per risk, safeguarding even large-scale businesses from financial hardship.

Beyond the basics: A range of parametric solutions

We offer a comprehensive suite of parametric solutions designed to address the specific needs of various industries; bound examples include:

  • Water utility companies: Protect against pipe bursts and disruptions with frost-thaw cover.
  • Agriculture: Mitigate the impact of droughts or excess rain on crops.
  • Construction: Safeguard projects against delays caused by earthquakes.
  • Hospitality: Weatherproof your business against the financial impact of tropical cyclones.
  • Car dealerships & solar farms: Shield your inventory from hail damage.
  • Wind farms & hydro stations: Ensure energy production remains on track despite wind fluctuations.

Empowering businesses for a sustainable future

At Generali Global Corporate and Commercial, in our role as a responsible insurer, we believe in building resilience and sustainability for our clients. By offering innovative parametric solutions, in the event of unforeseen weather phenomena and natural disasters, we empower our clients to face these with confidence. We aim to facilitate a swift recovery, help minimise business interruptions and ensure operational stability for our clients, their customers and employees.

Ready to take control of your risk management?

At Airmic 2024, you will be able to speak to one of our expert advisors, Fanny Dunner, at Booth L7A. She’ll help you understand how parametric insurance can be tailored to your specific needs.

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