Re/insurance broker Aon has extended its long-term collaboration with parametric technology firm CelsiusPro.
Aon’s Innovation and Solutions team is reported to have seen a dramatic increase in the number of clients seeking to understand how they might supplement or replace their existing risk transfer programmes with parametric structures to potentially improve cashflow following a loss event.
Working with Aon, CelsiusPro is able to deliver parametric data within a few hours of a triggering event, with any subsequent claim generally being paid within 30 days, and sometimes within 48 hours.
Having worked alongside Aon’s team since 2012, CelsiusPro’s data and technology has been key in a wide range of parametric transactions, assisting in the structuring of solutions for clients in different sectors across the globe.
In particular, CelsiusPro’s expertise is said to have been an important component in the risk analysis and design of parametric hurricane insurance products.
The work has not only included correlation analysis and the design of index-based insurance products, but also settlement services for Aon clients.
Paul Ramiz, Director of Aon’s Innovations and Solutions team, said, “Due to the speed of the payout, parametric solutions offer clients immediate and quantifiable cashflow as opposed to the delayed cash replacement offered by traditional insurance.
“All parametric products are bespoke, so the client really does receive a solution that reflects their unique blend of risk.”
Kurt Cripps, Managing Director of Aon’s Innovation and Solutions team, added, “We are pleased to announce the extension of our long-term partnership with CelsiusPro.
“As an experienced parametric solutions provider, CelsiusPro is able to access and process extensive volumes of climate and natural catastrophe data, combined with its fully automated processes for risk modelling, pricing, and policy management.
“Our joint capabilities enable us to innovatively use analysis, placement, structuring and settlement that allows us to deliver tailored solutions to our clients’ needs.”