Willis has staked a claim for a market first with the launch of a parametric policy which will payout in the UK and Ireland on a red weather warning rather than due to the event hitting.
The product, designed with Swiss Re Corporate Solutions which backs the policy, is activated automatically when a red weather warning is issued by the UK Met Office or Met Éireann, The Irish National Meteorological Service.
Willis summed up: “Simply put, ‘the forecast is the event’.”
The broker noted that traditional insurance policies typically respond to the physical damage impacts of weather events such as storms and floods but do not cover the cost of the pre-emptive action taken following
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