Demex Group, an analysis and pricing platform for climate-linked risks is partnering with algorithmic underwriting managing general agent Vave on the delivery of extreme temperature insurance to commercial properties across the US.
The intention is to embed Demex’s technology within Vave’s new commercial offering, which is designed to protect policy holders from the costs of extreme climate events.
This embedded insurance model is described as an amalgamation of Demex’s climate risk analytic expertise and Vave’s data-driven insurance offerings into a robust and effective climate resiliency tool.
The cover is parametric and directly linked to temperature, meaning that when the temperature passes a predefined threshold a claim is immediately triggered automatically, while its amount corresponds to the severity of the event.
Policies are calibrated, based on hyper-local weather trends and leverage property-level weather across roughly 42,000 zip codes and bolstered by underwriting algorithms capable of estimating the climate risk of every Vave policy in the country.
“At Demex, we believe insurers will lead the way helping people manage the effects of climate change. We’re excited to launch this product because we see it as one of the first major steps to create climate resilience for policy holders,” said Demex Chief Executive Officer Ed Byrns.
“The addition of Demex parametric weather cover to the Vave Commercial Property Product will give small businesses increased peace of mind that they can continue to operate following extreme weather,” added Vave’s Head of Product Robert Porter.
“Our collaboration with Demex continues the Vave tradition of finding innovative ways to offer consumers enhanced coverage.”