Tropical cyclones are one of the costliest natural catastrophes causing multi-peril impacts from damaging winds to flooding.WATCH THE WEBINAR ON PARAMETRIC INSURANCE FOR TROPICAL CYCLONE RISKASK FOR A QUOTE ➞
Planning ahead to ensure predictable and timely access to much-needed liquidity is key for corporates and public sector organisations to mitigate the long-term financial impacts.
For cyclone risk, AXA Climate parametric insurance offers a “Cat in a circle/polygon” structure that allows multiple locations to be covered within the circle/tailor-made polygon.”
In tropical cyclone insurance, we use multiple parameters for triggering a payout namely the path of the cyclone and its wind speed.
Our parametric solutions are a complementary fit to traditional indemnity cover for tropical cyclone risk, providing coverage for deductible buydowns and non-damage related business interruption.
For each Tropical Cyclone basin, we use data provided by the Regional Specialised Meteorological Centers ensuring speed in claims settlement, simplicity and transparency.
How does it work
Client chooses radius to create one or more circles around the insured location
If a tropical cyclone tracks through the circle…
…a payout is triggered depending on the predetermined wind speed/ category
The amount is predefined in the payout table
When to contact us?
up until two months before the start of a cyclone season in your basin
Data we will need from you:
Location to be insured
Parametric insurance cover for an airport in the USA
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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.
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.
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.
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