Parametric insurance pays within days of Excess Rainfall
FLOOD
RAPID RECOVERY INSURANCE
The parametric Flood Rapid Recovery Insurance (FRRI) provides loss payments to policy holders after
a devastating rainfall event to secure livelihood or keep business running within days.
The loss payment is defined by the maximum 24h accumulated rainfall of grid cells located within the Insured Location. The Insured Location is one or multiple circles with a radius in miles around the Insured Address.
In the trigger event, based on rainfall data from NASA (GPM IMERG), the loss payment is wired to the policyholder’s bank account within days.
KEY SELLING POINTS
° No proof of physical loss to your property
° No proof of loss to Business Income
° Wire transfer of loss payment within days
directly to the Insured
° Loss trigger based on satellite data from
NASA (GPM IMERG)
° Transparent product administrated through
best-in-class platform solution
° Backed by reputable reinsurer
FRRI PRODUCT
The product is designed as parametric insurance where the Insured Location is a circle with a defined radius around the Insured Address.
The Insured receives a payout within days when excess rainfall is reported in the Insured Location in a relevant category.
The FRRI Event Coverage Table describes the payout amount for predefined rainfall threshholds at any
grid cell within the Insured Location. There may be multiple payouts during the Policy Period, however the maximum payout is capped at the Sum Insured.
FRRI EVENT COVERAGE TABLE
If excess rainfall is reported in the Insured Location, loss payments are due based on the Event Coverage Table.
HOW IS IT MEASURED
The satellite dataset GPM IMERG from NASA provi- des 3 hourly rainfall data based on a 10x10km grid. Every 3 hours, the sum of the past 24 hours is calcu- lated starting with 03:00 to 24:00 UTC. The maximum 24-hour sum is taken for the respective day as Daily Rainfall for each grid cell.
The relevant rainfall values for the payout calculation is the Maximum Daily Rainfall of any grid cell within the Insured Location. Grid Cells whose Center Point lies over the ocean are excluded.
FRRI POLICY TERMS EXAMPLE
PAYOUT EXAMPLES
Scenario 1
A business owner in Louisiana purchased a FRRI for the 2006 storm season with a policy limit of $500,000. The Insured Location is a circle with a 25km radius around the business.
An Excess Rainfall event triggered rainfall of 450mm or the >50-year return period at one grid cell within the Insured Location. The business owner received a $500,000 payout.
Scenario 2
A business owner in Pensacola purchased a FRRI for the 2014 storm season with a Policy Limit of $200,000. The Insured Location is a circle with a 25km radius around the business.
An Excess Rainfall event triggered rainfall of 400mm or the 25 – 50 year return period at one grid cell within the Insured Location. The business owner received a $100,000 payout.
Scenario 3
A business owner in New Zealand purchased a FRRI for 2023 with a Policy Limit of $200,000.
The Insured Location is a circle with a 25km radius around the Insured Address.
Cyclone Gabrielle triggered rainfall of 150mm or the 10 – 25 year return period at one grid cell within the Insured Location. The business owner received a $50,000 payout.