With increasing wildfire incidents causing significant economic losses, it’s crucial to understand how Parametric Wildfire Insurance can play a vital role in your risk management strategy.
Wildfires have emerged as formidable threats to global business continuity, hitting hard on operations and financial stability, particularly in wildfire-prone regions such as the USA, New Zealand and Australia. In 2023, wildfires led to $15 billion in economic damages globally, with $6 billion uninsured. The situation is even more acute in the United States where, for example, the 2018 California wildfires incurred more than $24 billion in damages, with less than half of that amount covered by insurance, leaving property owners, businesses, and public entities financially vulnerable. Such events highlight the need for robust risk management strategies to prevent significant business disruptions and financial losses due to wildfires.
The impact of wildfires extends beyond immediate physical damage, affecting non-damage business operations as well. The hospitality industry, for instance, faces direct threats to property as well as the risk of decreased tourism in the case of wildfire affecting surrounding areas of the insured location. Our parametric insurance solution is designed to meet the unique needs of a variety of industries and high-value property owners looking to safeguard their assets, providing reliable, customized coverage.
Minimize the Impact of Wildfire Through Parametric Wildfire Insurance
Our parametric wildfire insurance provides an innovative solution to manage these risks effectively. Unlike traditional insurance, which typically requires assessments of physical damage before any payouts, our parametric wildfire insurance uses high-resolution satellite imagery to determine the extent of the wildfire. Coverage is triggered if a wildfire breaches a predefined parameter around the insured asset. This objective approach ensures swift payouts, often within days, allowing businesses to swiftly respond to damages and stabilize operations quickly.
Parametric solutions allow businesses to plan with certainty and enhance their resilience against the unpredictable nature of wildfires. By choosing this strategic insurance option, you can safeguard your assets, ensure business continuity, and mitigate the financial impact of wildfires.
Want to find out more about our parametric wildfire insurance solution? Download our product sheet today.
