Insurtechs Reask, Kettle partner for parametric hurricane reinsurance in US
Climate risk analytics insurtech Reask, which focuses on natural hazard modelling, has partnered with MGA to offer parametric hurricane reinsurance in the US. The two companies share a mutual vision that AI and machine learning allow for better prediction of risk in a changing climate.
The partnership will allow Kettle to expand its climate-related offering to include parametric hurricane reinsurance by leveraging Reask’s hurricane modelling product Metryc.
The companies said the data supplied by Reask will help Kettle to calculate premiums more accurately, as well as enable it to settle pay-outs more efficiently within 24 hours of an event.
Reask provides global tropical cyclone models to re/insurers such as Swiss Re, AXA, parametric insurer Descartes, and ILS firms Securis and Twelve Capital. Kettle initially specialised in more accurate pricing, underwriting, and reinsuring of wildfire risks in the US.
David Schmid (pictured), head of parametric products at Reask, said: “This collaboration marks the beginning of a new era in which Reask will contribute significantly to the advancement from first generation distance-based parametric covers to more accurate and cost-effective intensity-based parametric products.”
Brian Espie, chief underwriting officer at Kettle, said: “Kettle and Reask share a mutual vision that AI and machine learning allow for better prediction of risk in a changing climate. The seamlessness of this partnership provides Kettle with the ability to accelerate our product innovation and provide bespoke coverage solutions for customers in the greatest areas of need."
“Our partnership with Kettle is a win-win situation; we supported them in significantly shortening their go-to-market period, while they facilitated our expansion in the US market,” Schmid added.
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