AXA Climate partners with CoreLogic to enhance parametric hail offering
AXA Climate, the parametric specialist risk transfer managing general agent (MGA) unit of global insurance and reinsurance company AXA XL, is working with risk analytics and data specialist CoreLogic to enhance and expand a parametric hail risk transfer product.
AXA Climate launched its Hail Protection parametric insurance product in 2019 and now with the help of CoreLogic wants to expand its remit to offer it more widely, to an increasing range of businesses.
With the help of CoreLogic’s proprietary data, AXA Climate intends to expand the offering of the parametric hail solution to condominiums, golf courses and greenhouses, among others.
The parametric insurance product is designed to help businesses recover from financial losses caused by hail events, including both direct property damage and business interruption.
Hail losses are an area of increasing concern among business owners and in the insurance and reinsurance industry.
In 2021 there were seven billion dollar severe weather events in the United States that featured hail outbreaks, according to the National Oceanic and Atmospheric Administration (NOAA).
The insurance market has been hardening for properties and businesses in hail exposed regions, or where losses have already occurred, which has been both raising prices for insured and driving higher deductibles.
“AXA Climate constantly strives to streamline its user experience and reduce any potential basis risk in its parametric offers. Working with CoreLogic allows us to do both,” explained Antoine Denoix, CEO of AXA Climate. “Hail is our starting point, but we see the potential to collaborate further with CoreLogic to support actors engaged in sustainable transitions.”
When a hail related loss event occurs, CoreLogic will leverage its proprietary technology to capture the event and report the maximum hail size at the insured location and the surrounding area.
This Hail Verification Report is used as the reference and input to determine whether a parametric trigger has been activated and whether any parametric payout is due under an insurance policy.
As ever with a parametrics trigger, no loss adjustment is required and payout amounts are pre-defined with the insured, based on the maximum hail size declared in a Hail Verification Report from CoreLogic.
“CoreLogic is powering AXA Climate to make better decisions in parametric policy through data-driven insights in hail location and severity,” Mick Noland, managing director, CoreLogic said. “CoreLogic can help AXA Climate enable shorter cycle times for policyholders, all while helping those policyholders find, buy and protect the homes and businesses they love.”
