Parametric and weather index insurer, Meteo Protect has launched a new weather insurance product designed for river cruise boats and riverside businesses, which were adversely affected by the extreme precipitation and flooding in France in recent months.
From December 2017 to February 2018, France experienced record-breaking levels of precipitation, which led to flooding on rivers across the country, including the Seine, Marne, Yonne, Rhone, and Saone rivers.
The French government recognized over 275 communities to be in a state of natural disaster, and the French Federation of Insurance estimates the floods will result in 30,000 claimants and losses of up to €200 million.
Meteo Protect’s parametric insurance solutions consider losses in revenue not covered by traditional re/insurance solutions, compensating river boat operators and riverside businesses for losses incurred as a result of flooding.
France’s recent floods showed that many businesses suffer a partial or complete cessation of business activity during flooding periods as bridges become too low to pass, quays are closed, and river navigation is prohibited.
The new coverage is based on a weather index that accounts for the number of days the level of a river is above a certain height, and offers operators and businesses compensation per critical day based on their risk profile.
Gabriel Gross, Chief Executive Officer (CEO) of Meteo Protect, said: “This year’s flooding was significant for how long it affected economic activity generated along France’s main rivers.
“As for our agricultural clients, persistent losses caused by adverse weather conditions can spell the end of businesses that do not have the reserves to offset such losses. Our parametric weather solutions are customizable to protect these weather sensitive businesses beyond the limits of traditional insurance.”
Meteo Protect utilises index-based systems in its underwriting and pricing platform as it ensures indemnification is simple and automatic, requiring no field loss assessment, deductible or adjustment.