Chaucer launches parametric weather-driven non-damage BI cover

International specialty insurance and reinsurance group Chaucer has announced its entry into the parametric weather risk transfer space, with the launch of a cover for weather-driven non-damage business interruption.

Chaucer will be providing the capacity to the product, which is its first weather insurance offering. Previously the company had partnered with K2 to launch parametric hurricane and earthquake products.

The product will cover weather-related losses for weather events that fall outside a pre-established range of variables such as temperature, wind speed or precipitation, Chaucer explained, adding that it will be a “data-centric class of business where robust quantitative analysis is paramount”.

Weather Insurance is set to be a new underwriting class for Chaucer, with a new specialist team running it that the company has partnered with.

It will be led by Dr Ed Byrns, who previously held leadership roles at Citadel and Louis Dreyfus.

Byrns was also previously the Chief Technology & Innovation Officer at Munich Re Weather Group and was the CEO and a co-founder of insurtech Demex Group.

He will be supported by a team of experts within the weather risk management space.

Byrns commented, “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.”