Lloyd’s coverholder Meteo launches river parametric insurance offering
Lloyd’s coverholder Meteo Protect has launched a new weather insurance product designed specifically to compensate for the losses incurred by river cruise boats and riverside businesses as a result of flooding.
The move follows extreme precipitation from December through February of this year in France and subsequent flooding of rivers, including most famously the Seine. River flooding can cause significant losses in revenues not covered by traditional insurance solutions, according to a company statement.
The new parametric insurance coverage is based on a weather index, wherein Meteo’s underwriting and pricing platform aggregates weather-related data, analyses risks and provides a quote in real time. Unlike traditional insurance, indemnification is simple and automatic, requiring no field loss assessment, deductible or adjustment, the company claims.
France received extreme precipitation from December through February and subsequent flooding of rivers, including the Seine, Marne, Yonne, Rhone and Saone. The French Federation of Insurance estimates the material damage from the flooding to comprise 30,000 claimants for a total indemnification of up to €200 million. According to reports, this was the most severe flooding since extreme rainfall affected the northern half of France in May and June 2016, causing insured damage of €1.4 billion.
Meteo said that many businesses suffer a partial or complete cessation of business activity during flooding periods due to bridges being too low for certain boats to pass, quays being closed so boats and businesses are inaccessible, and even all river navigation being prohibited.
“This year’s flooding was significant for how long it affected economic activity generated along France’s main rivers,” said Gabriel Gross, CEO of Meteo Protect. “As for our agricultural clients, persistent losses caused by adverse weather conditions can spell the end of businesses that do not have the reserves to offset such losses. Our parametric weather solutions are customizable to protect these weather sensitive businesses beyond the limits of traditional insurance.”
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