Sompo International Holdings, the Bermuda-based specialty provider of property and casualty (P&C) re/insurance, has developed a new suite of weather-driven risk management products for the real estate and hospitality sectors.
The products will provide coverage for loss of revenue from variations in weather variables, and are customised for each client’s risk exposures.
Coverage can be structured either as a standalone solution or as part of an existing programme to provide a deductible buy-down, significantly reducing the deductible if a catastrophe occurs or providing coverage for hotel cancellations and various other business interruption costs.
Sompo says the contracts will be indexed to site-specific weather variables such as temperature, rainfall, snowfall, and hurricanes as measured and reported by global meteorological agencies.
Protection will be available for both single locations and property portfolios, and can range in duration from several days to several years.
Michael Chang, Chief Executive Officer (CEO) of Sompo Global Risk Solutions, commented: “This was a great opportunity for us to marry our deep expertise in the real estate and hospitality industries with the breadth of specialty coverages that Sompo International offers.
“By partnering with our Global Weather team, we are able to offer our clients unique and cutting-edge products to provide financial security in light of increasingly frequent and severe weather events.”
Martin Malinow, President of Sompo Global Weather, added: “Working with our Sompo Global Risk Solutions colleagues, we have developed new products tailored to the specific circumstances that keep property owners awake at night.
“Weather variations and catastrophic events can have a significant impact on profitability in these sectors and by customizing our weather risk management solutions we are able to directly address their unique needs.”
