Aviva Canada now offers parametric solution for severe rain
Aviva Canada now offers parametric excess rain coverage to help clients better cope with climate change, using a white label tech solution by Swiss-based parametric InsurTech company CelsiusPro.
“We are pleased to have successfully completed the configuration and launch of [our parametric solution] for excess rainfall insurance for Aviva Canada,” CelsiusPro CEO Mark Rueegg commented in a statement on the company’s web page. “We believe these insurance products will prove invaluable for businesses with excess rainfall risk across Canada.”
CelsiusPro’s White Label Platform (WLP) solution is designed to spare insurance companies that want to add parametric products to their portfolios the time and effort of creating something from scratch.
Parametric rainfall insurance provides loss payments to insureds after excess rain to help business clients recover more rapidly after adverse weather events. Rainfall data is provided by NASA. A reporting latency of only two days allows for fast payouts.
CelsuisPro’s rainfall product includes two options. “Rain Season” covers against an excess of cumulative rainfall during the risk period established with the client. “Rain Day” covers against excess rain days during the risk period.
One advantage of parametric insurance over traditional insurance is that payouts are automatic and quick, occurring within a few days of a confirmed adverse event. No claims need to be filed, since the payout is triggered based on the insured’s location and official weather datasets issued by recognized global organizations.
WLP features include mobile functionality, data feeds, an online premium calculator, an offer and policy generator, quote and bind monitoring tools, as well as an automated settlement calculator and report creator. The solution is set up to allow additional parametric products, which provide coverage against other perils (i.e., cold, heat, drought), to be easily installed later.
Aviva Canada has branded the tool and configured it to include a bilingual set-up in French and in English. The insurer said the plan is to propose the solution to commercial clients in construction, landscaping and municipalities. It will initially launch as a fully operational one-year pilot project limited to a small number of brokers, with scale-up planned thereafter.
“It was important for Aviva to have a tool that was clear, simple, and efficient to use for our broker partners so that they could deliver effectively and concisely a product that was easily digestible and comprehensible to our collective clients,” says Urs Uhlmann, Aviva Canada’s managing director of global corporate and specialties.
Feature image by iStock.com/VisualCommunications
