AXA Climate partners with RMS on parametric insurance
AXA Climate, an entity of the AXA Group that specializes in climate change adaptation, has announced that it will include HWind analytics from risk modeling company RMS as a principal trigger metric for its relevant US parametric insurance policies.
HWind produces real-time data for tropical cyclone events, allowing rapid evaluation of hurricane trigger/payout conditions, AXA Climate said. This allows parametric policyholders to gain rapid access to capital following weather events. RMS HWind analytics offer comprehensive cover across the western North Atlantic, Eastern Pacific, and Central Pacific basins.
Using RMS HWind will help AXA Climate to be flexible in structuring parametric policies, ensuring clients will quickly receive the protection they paid for in the aftermath of damaging winds.
“As an Engaged Climate Insurer, we believe the preciseness of sophisticated real-time data is essential to improve the use and uptake of parametric insurance solutions,” said Amaury Dufetel, head of insurance at AXA Climate. “Data coming from independent, reputable organizations like RMS HWind solutions, developed over more than 25 years by one of the world’s leading hurricane observation researchers, will allow us to structure innovative parametric covers and bring to our clients the best tailor-made tropical cyclone coverage, both in terms of price and claim settlement.”
“By working closely with AXA Climate, we have been able to help an important client develop innovative products that offer a competitive advantage and can help enable growth into new markets,” said Charlotte Acton, senior director at RMS. “Parametric insurance is another example of how the insurance industry can help build resilience into economies, which in turn helps reduce the protection gap. RMS remains committed to supporting insurance innovation in our products, for our clients, and for their end users.”
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