AXA Climate picks RMS real-time cyclone modelling for parametric triggers

AXA Climate, handling parametric climate insurance for the French insurance giant, tagged the HWind analytics tools from Moody’s risk modelling unit RMS for use trigger to its US parametric covers.

HWind real-time data sets on tropical cyclone events will determine payout triggers for parametric policies. RMS HWind solutions cover events in the Western North Atlantic, Eastern Pacific, and Central Pacific basins.

AXA Climate’s head of insurance Amaury Dufetel said: “We believe the preciseness of sophisticated real-time data is essential to improve the use and uptake of parametric insurance solutions. Data coming from independent reputable organizations like RMS HWind solutions, developed over more than 25 years by one of the world’s leading hurricane observation researchers, will allow us to structure innovative parametric covers and bring to our clients the best tailormade Tropical Cyclone coverage both in terms of price and claim settlement.”

RMS senior director Charlotte Acton added: “By working closely with AXA Climate, we have been able to help an important client develop innovative products that offer a competitive advantage and can help enable growth into new markets. Parametric insurance is another example of how the insurance industry can help build resilience into economies, which in turn helps reduce the protection gap. RMS remains committed to supporting insurance innovation, in our products, for our clients, and for their end users.”