Risk modelling company Reask has formed a partnership with Axa Climate, using the former’s Metryc product to select, price, underwrite and trigger parametric insurance policies for tropical cyclone winds.

Reask’s ability to deliver quality, high-resolution data on a global scale is behind the tie-up, according to Axa Climate.

“Their approach to probabilistic modelling empowers us to calibrate and structure parametric contracts with precision, ultimately benefiting our clients with faster and more accurate risk transfer solutions,” Chief Underwriting Officer Regine Mollenhauer said.

Within Australia, Axa Climate has underwritten policies for a range of commercial insurance applications, including business interruption protection shortly after cyclone impacts.

Parametric insurance is triggered by measured data, without a business needing to wait for an expert to assess damage. It is an alternative approach that delivers rapid claims payouts, and a growing number of companies are exploring the cover option.

“Axa Climate’s readiness to integrate our globally consistent data into their parametric insurance solutions showcases the transformative potential of data in further reducing the protection gap,” Reask Head of Parametric Products David Schmid said.

Reask Head of (Re)insurance Product Nick Hassam says novel insurance solutions will become increasingly necessary as natural hazard impacts increase in a changing climate. 

“In the coming months, Reask will extend its peril coverage to look at other climate hazards, including drought and bushfire, providing additional opportunities for parametric insurance protection,” he told insuranceNEWS.com.au.