The frequency & severity of flooding events across Australia has led to:
Traditional carriers declining flood cover altogether due to recent loss events and high exposure.
Increasing numbers of self-insured clients or higher imposed deductibles for flood risk.
Significant disruptions to the retail industry (main roads closed, forced shutdowns etc.), resulting in a loss of attraction and access.
Key benefits
Fresh capacity:
Parametric products offer an alternative to under or un-covered risks.
Customised protection:
Flexibility and straight-forward structure tailored to clients needs.
Transparency:
Certainty of capacity and pricing year on year.
Timely claims payment:
On-site monitoring, public gauges, BOM data & satellite imagery allow realtime claims assessment, enabling a quick payout post-event, helping businesses return to usual operations quickly.
case study example
Case study
The summer of 2022 was meant to mark a return to shopping and trading activity for the East Coast following two years of economic pain due to the pandemic.
Problem
However, the eastern floods proved otherwise for a client in the retail industry, with their property experiencing excessive flooding and immense damages. The traditional market responded by restricting capacity and tightening treaty reinsurance, leaving the client facing a harsh reality in search of adequate coverage.
Solution
To avoid a repeat scenario, the client and their broker transferred their flood risk to a river gauge parametric policy tailored to their needs and budget, particularly as their assets are in flood-prone areas.
Result
Based on historical back testing, if repeated, the 2022 floods would have surpassed the pre-defined policy thresholds. If the water level reached a height of 5.5 metres, they would have received a rapid insurance payout of A$35 million to cover repair costs and bridge the non-damage business interruption impacts on their balance sheet.
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