Critical Day Protection
DESCRIPTION
A heat day is defined as a day in which the daily maximum temperature (T-max) is above the defined threshold temperature.
If the trigger number of heat days is exceeded,
the policy holder will receive a fixed amount for each additional heat day up to the cover limit.
EXAMPLE
APPLICATIONS
Agriculture, construction, events and other industries where losses per critical day are constant.
PAYOUT PROFILE
Payout calculation: (8 cumulative heat days – 2 trigger heat days) * USD 10,000 payout per heat day = USD 60,000
Excess Degree Protection
DESCRIPTION
Daily heat degrees are calculated as the difference between the threshold temperature and the daily maximum temperature (T-max), where T-max is above the threshold temperature.
If the trigger number of heat degrees is exceeded, the policy holder will receive a fixed amount for each additional heat degree up to the cover limit.
EXAMPLE
APPLICATIONS
Agriculture, construction, services, and other industries where the intensity of a heat event generates losses which increase as temperature deviates from the threshold.
PAYOUT PROFILE
Payout calculation: (33 cumulative heat degrees – 15 trigger heat degrees) * USD 10,000 payout per heat degree = USD 180,000