Catastrophe risk modeller CoreLogic has been selected to expand the Hail Protection product designed by AXA Climate, the specialist parametric risk transfer division of AXA.
The product has been designed to help businesses recover from financial losses such as property damage or business interruption following a hail event.
After the launch of the parametric hail product in 2019, AXA Climate will bring the solution to condominiums, golf courses and greenhouses, among others.
According to the National Oceanic and Atmospheric Administration (NOAA), 18 billion-dollar disasters have hit the U.S. in 2021.
Seven of these events included episodes of severe hail. With large losses due to hail occurring each year, insureds are experiencing a hardening market with higher deductibles and premiums.
When an insured experiences a hail event, CoreLogic uses its proprietary technology to capture the event and report the maximum hail size at the insured location and the surrounding area.
This Hail Verification Report is then the reference in determining if a parametric policy has triggered. No loss adjustment is needed as payouts are pre-defined with the insured as a function of the maximum hail size declared in the Hail Verification Report.
Antoine Denoix, CEO of AXA Climate commented: “AXA Climate constantly strives to streamline its user experience and reduce any potential basis risk in its parametric offers. Working with CoreLogic allows us to do both.
“Hail is our starting point, but we see the potential to collaborate further with CoreLogic to support actors engaged in sustainable transitions.”
Mick Noland, managing director, CoreLogic added: “CoreLogic is powering AXA Climate to make better decisions in parametric policy through data-driven insights in hail location and severity.
“CoreLogic can help AXA Climate enable shorter cycle times for policyholders, all while helping those policyholders find, buy and protect the homes and businesses they love.”
