INSURANCE FOR THE CLIMATE CHANGE ERA
HARNESSING SATELLITE DATA TO STRUCTURE PARAMETRIC SOLUTIONS FOR CLIMATE CHANGE RISKS
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WHAT WE DO
BIRDSEYEVIEW IS A DIGITAL-FIRST MANAGING GENERAL AGENT (MGA).
WE USE SPACE-DATA TO DESIGN INNOVATIVE PARAMETRIC SOLUTIONS
AT THE HEART OF WHAT WE DO IS RAPTOR™, OUR PROPRIETARY ALGORITHMIC UNDERWRITING AND QUOTE & BIND ENGINE
WE WORK WITH BROKERS AND AGENTS.
USING RAPTOR™, WE ENABLE THEM TO DIVERSIFY THEIR PRODUCT OFFERING AND ENSURE THAT GAPS IN THEIR CLIENTS' EXPOSURES ARE COVERED
OUR PARAMETRIC PRODUCTS CAN COMPLEMENT TRADITIONAL INDEMNITY PRODUCTS
WHAT WE DO
BY HARNESSING BIG WEATHER-DATA FROM SATELLITES, RADAR, AND GROUND STATIONS, WE CAN PROVIDE BUSINESSES IN AGRICULTURE, EVENTS, HOSPITALITY, LEISURE, & CONSTRUCTION, WITH PROTECTION FROM SEVERE WEATHER-EVENTS
WE ADDRESS THE FAILURES AND GAPS ASSOCIATED WITH TRADITIONAL INSURANCE. INSTEAD WE PROVIDE SIMPLE, FAST, AND FLEXIBLE COVER TO THOSE THAT NEED IT MOST
IF YOU ARE A BROKER, AGENT OR INTERMEDIARY THEN PLEASE GET IN TOUCH.
HASSLE FREE WEATHER-RISK INSURANCE TO PROTECT YOUR BUSINESS
JARGON FREE POLICIES WITH TRANSPARENT PRICING
IMMEDIATE INDEMNIFICATION IN EVENT OF LOSS
SUPPORTERS AND COLLABORATORS
CLIMATE CHANGE
NATURAL DISASTERS ARE INCREASING IN FREQUENCY AND SEVERITY AS A RESULT OF CLIMATE CHANGE
SNAPSHOT
NATURAL DISASTERS IN 2020 RESULTED IN 8,200 LIVES LOST AND GLOBAL LOSSES OF $210BN, 60% OF WHICH WERE UNINSURED.
- RECORD NORTH ATLANTIC HURRICANE SEASON
- HISTORIC WILDFIRES
GROWING TEMPERATURES ARE INCREASING THE NUMBER OF HEATWAVES AND DROUGHTS, FUELLING WILDFIRES. MEANWHILE INCREASED TEMPERATURES ENABLE THE ATMOSPHERE TO HOLD MORE MOISTURE, RESULTING IN MORE SEVERE RAINFALL AND FLOOD EVENTS.
THE ECONOMIC IMPACT OF CLIMATE CHANGE IS BEING COMPOUNDED BY INCREASING POPULATION CONCENTRATION AND DEVELOPMENT IN CATASTROPHE EXPOSED AREAS AND RISING WEALTH AND PROPERTY VALUES.
CYCLONE SPOTLIGHT
Warmer water temperatures mean greater heat energy is available to produce tropical cyclones.
Interestingly, since 1975 we have seen a substantial increase in observable Cat 4-5 hurricanes but a reduction in Cat 1-2 hurricanes.
One of the most well understood and robust connections is that the warmer the atmosphere, the more moisture it can hold. For each 1°C, the atmosphere can hold 7% more moisture. (Clausius-Clapeyron Relationship)
This effect is boosted during cyclones.
It was this effect that resulted in the 60 inches of rain that fell in 2017 on Southeast Texas during hurricane Harvey.
The warmer climate also results in a slowing of the cyclones forward speed. Since 1949, the forward speed of cyclones over land has reduced by 21% in the North West Pacific and 16% in the North Atlantic.
This lethargic movement exacerbates the impacts of heavy rainfall, the driver behind the majority of damage from cyclones.
PARAMETRIC INSURANCE
THERE IS CURRENTLY A MAJOR UNDERINSURANCE GAP
$130BN WORTH OF LOSSES FROM NATURAL DISASTERS ARE UNINSURED
AN ESTIMATED 90% OF WEATHER DRIVEN LOSSES IN DEVELOPING MARKETS ARE UNINSURED
TRADITIONAL INDEMNITY INSURANCE IS EITHER UNAVAILABLE OR INAPPROPRIATE, LEAVING BUSINESSES AND INDIVIDUALS EXPOSED TO NATURAL DISASTERS
THE GLOBAL (RE)INSURANCE MARKET HAS THE ABILITY TO DIRECTLY INFLUENCE GLOBAL ECONOMIC RESILIENCE TO THESE CLIMATE CHANGE DRIVEN EVENTS
PARAMETRIC INSURANCE HOLDS THE ANSWER
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THE BASICS
PARAMETRIC INSURANCE PAYS OUT ACCORDING TO A VERIFIABLE AND OBJECTIVE DATA-DRIVEN EVENT OCCURRING.
FOR EXAMPLE, IF WIND-SPEEDS OR RAINFALL EXCEEDS A PRE-DETERMINED LEVEL. THIS IS MEASURED BY AN INDEPENDENT 3RD PARTY DATASET. THERE IS NO NEED FOR TIME-CONSUMING OR EXPENSIVE LOSS ADJUSTMENT.
IN PRACTICE
FOR EXAMPLE: 90% OF CROP FAILURE IS CAUSED BY TOO MUCH OR TOO LITTLE RAINFALL.
THEREFORE, A FARMER WOULD COME TO BIRDSEYEVIEW AND PURCHASE A POLICY WHEREBY, IF RAINFALL EXCEEDS A CERTAIN LEVEL AT HIS FARM, WE WOULD MAKE A PAYOUT. WE CONTINUALLY MEASURE RAINFALL CONDITIONS AT THE FARMERS LOCATION USING, FOR EXAMPLE, METOFFICE WEATHER DATA.
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CHOOSE PERIL
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WE MONITOR CONDITIONS AT YOUR LOCATION REMOTELY
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RAINFALL OR DROUGHT OCCURS
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WE IMMEDIATELY PAY MONEY TO YOUR ACCOUNT
HOW IT WORKS
BUSINESSES WHOSE REVENUES ARE EXPOSED TO SEVERE WEATHER EVENTS CAN BENEFIT FROM THE FINANCIAL SECURITY THAT PARAMETRIC INSURANCE CAN PROVIDE
SECTORS IMPACTED BY ADVERSE WEATHER:
AGRICULTURE
GLOBAL SPORTING EVENTS
CLOSURE OF MINES DUE TO EXCESS-RAIN
SUPPLY CHAINS & LOGISTICS
HOSPITALITY & RETAIL
CONSTRUCTION
We are continuing to augment the suite of parametric products readily available and pre-processed within our algorithmic underwriting engine RAPTOR™.
However, we can design bespoke products for other perils upon brokers' request.
PERILS
*AUTOMATED IN RAPTOR™
RAINFALL
*AVAILABLE UPON REQUEST*
TEMPERATURE
WINDSPEED
EARTHQUAKE
FLOOD
WILDFIRE
WHY IS IT SO CRITICAL THAT WE MANAGE GLOBAL WEATHER - RISK?
FOOD SECURITY
GLOBAL POPULATION INCREASE, SHIFTING DIETS, AND THE INCREASING NUMBER OF CLIMATE CHANGE-INDUCED NATURAL DISASTERS ARE PUTTING INCREASING PRESSURES ON GLOBAL FOOD SUPPLIES
CLIMATE CHANGE
NATURAL DISASTERS ARE INCREASING IN BOTH FREQUENCY AND SEVERITY
ECONOMIC SECURITY
BIRDSEYEVIEW'S UNCOMPLICATED WEATHER-RISK INSURANCE CAN SAFEGUARD FARMER LIVELIHOODS IN THE EVENT OF A NATURAL DISASTER
SUSTAINABILITY
FINANCIAL SECURITY ENSURES THAT SUSTAINABLE FARMING PRACTICES ARE PRESERVED
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