Chaucer, a leading insurance underwriting group, has introduced parametric cover to address weather-driven business interruption losses.
The move is set to see businesses receive protection for incidents falling outside predefined weather variables like temperature, wind speed, or precipitation, according to CIR Magazine.
Leveraging advanced algorithms, this innovative solution triggers payouts automatically when weather events deviate from predefined parameters, ensuring swift and efficient claims settlement.
Chaucer’s parametric cover is underwritten by a specialised team based in the United States.
Headed by Dr. Ed Byrns, a seasoned leader with extensive experience in weather risk management, the team aims to provide robust underwriting capacity for the new venture.
Reacting to the news, he said, “I’m excited to be working with Chaucer at this pivotal time for the weather insurance market and creating new products with clients at the heart of it. The growth in weather related insurance has been accelerated by climate change and as risks posed by unexpected weather patterns become more frequent, the need for insurance products is becoming more pronounced.”
Duncan Gemmel, chief strategy officer at Chaucer, added, “We are delighted to have Ed Byrns working with us to lead our entry into the growing weather insurance market. He brings a wealth of knowledge and expertise and will help deliver the solutions that our clients need.”
During 2022, Chaucer collaborated with parametric insurance provider K2 Parametric to offer hurricane and earthquake damage coverage tailored for mid-sized corporations and municipalities in the United States.
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