PriyaPatel
TLDR:
- Chaucer introduces parametric cover for weather-driven business interruption losses.
- This innovative solution triggers payouts automatically when weather events deviate from predefined parameters.
Chaucer, a leading insurance underwriting group, has introduced parametric cover to address weather-driven business interruption losses, providing protection for incidents falling outside predefined weather variables such as temperature, wind speed, or precipitation. The parametric cover is underwritten by a specialized team led by Dr. Ed Byrns, who has extensive experience in weather risk management.
The cover leverages advanced algorithms to trigger payouts automatically, ensuring swift and efficient claims settlement. Dr. Byrns stated that the growth in weather-related insurance has been accelerated by climate change, leading to an increased need for insurance products. Chaucer’s chief strategy officer, Duncan Gemmel, expressed excitement about the collaboration with Dr. Byrns to tap into the growing weather insurance market and deliver tailored solutions to clients.
In 2022, Chaucer partnered with parametric insurance provider K2 Parametric to offer hurricane and earthquake damage coverage tailored for mid-sized corporations and municipalities in the United States. This move showcases Chaucer’s commitment to innovation and adapting to evolving risks in the insurance industry.
