Swiss Re, Guy Carpenter & ICEYE have teamed up to deliver a pilot parametric flood insurance programme for New York City neighbourhoods.
The programme, launched in collaboration with the Center for NYC Neighborhoods (CNYCN) and other partners, is expected to provide up to $1.1 million in emergency funding to low- and moderate-income households in need after a major flooding event in New York City.
Qualifying households would receive a grant up to $15,000 from CNYCN in the aftermath of a major flood, with an application portal opened up after a flood event triggers the parameters for the insurance coverage.
According to a report from Artemis, the parametric trigger behind this flood insurance scheme is particularly innovative, as it leverages ICEYE’s unique satellite data insights, as well as other data sources that can help to reduce basis risk and ensure the parametric insurance cover is tightly calibrated to actual flood experience.
If a flood occurs, the insurer Swiss Re Corporate Solutions and ICEYE will determine the percentage of each insured neighborhood that falls within the flooded area.
Swiss Re Corporate Solutions will then issue a payment to the CNYCN, so that it can distribute funding to qualifying individual households.
Jake Clark, head of public sector North America at Guy Carpenter, said, “With the increasing frequency and severity of adverse weather impacting communities, it is crucial that we take steps to protect the most vulnerable. Guy Carpenter is honored to be a part of this important solution and we encourage other communities to use these approaches as a component of disaster risk management efforts.”
Last year, Arturo, a PropTech company that delivers intelligent analytics from individual property to portfolio, partnered with ICEYE to bring insurers flood and property damage insights.
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