Client NEED
An airport in Key West is looking for a parametric insurance solution against a potential cyclone that could lead to not only property damage but also to a decline in passenger traffic and increased operating costs.
Pain point: high level of deductibles of traditional coverage and Non-physical Damage Business Interruption exclusions.
Our solution
CYCLONE Protection is structured using a “Cat in a circle” approach.
Together with the client we have chosen to create two circles of 25 and 50 mi radii around the airport’s location.
We have agreed upon the payout structure according to the cyclone’s maximum sustained 1 minute windspeed and track.
THE RESULT
In 2017, Hurricane Irma reached Category 4 status as it tracked through the inner 25 mile circle.
As a result, the client received 75% of the Sum Insured from AXA Climate.