Pain points in covering overhead T&D lines:
Limited capacity in the traditional indemnity market
Widespread power interruptions following Nat Cat & severe weather events, impacting economic acitivity and supply chains
Clients forced to pay significant additional project costs due to Nat-Cat damage/delays on network lines
Premium rate hikes when market conditions harden
Key benefits
Fresh capacity:
Parametric products offer an alternative to un-insured risks
Customised protection:
Flexible and straight-forward structure tailored to clients needs
Transparency:
Certainty of indemnification with pre-agreed thresholds & payout amounts
Timely claims payment:
On-site monitoring, weather stations, & location data enables real-time claims assessment & quick payout following a triggering event
case study example
Case study example
Overhead T&D networks have extensive exposure to cyclone risk, which is what a client experienced when Tropical Cyclone Mocha hit their large telecom company on May 14, 2023.
Problem
Having suffered recent losses, they faced premium rate hikes. Meanwhile, their dispersed distribution also added challenge to the traditional loss adjustment process, resulting in payment delays & shortfalls.
Solution
If covered at the time, our parametric cover could map the grid & network of T&D lines, providing a granular assessment of their cyclone exposure, with payout structured according to wind speed.
Result
In the case of a policy-triggering windstorm event, near real-time monitoring of storm track and intensity data would have allowed for payment within a few days - with no need to undergo the hassle of loss-adjustment on wide-spread assets.
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