Reinsurance News

Swiss Re & Ping An partner on mobile parametric insurance for Chinese typhoon risk

7th July 2017 - Author: Staff Writer

Swiss Re has partnered with Chinese property and casualty insurer, Ping An, to offer China’s first ever mobile-enabled parametric cover for property insurance for typhoon response and post-disaster recovery for high-risk regions.

Typhoon eyeUnder the agreement, Swiss Re provides reinsurance and technological support as well as its catastrophe models and data on natural disasters to assist in generating accurate quotes for Ping An’s clients.

The parametric insurance offers coverage for eight typhoon prone coastal provincial regions in Southeast China: Guangdong, Zhejiang, Shanghai, Fujian, Jiangsu, Guangxi, Shandong and Hainan.

Purchase, inquiry and claims settlement can be completed through a mobile device interface.

John Chen, President of Swiss Re China, said; “typhoons are the most often and costliest natural catastrophes which occur in China.

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“They can cause severe life and property loss in economically developed and densely populated regions.

“We want to leverage on our experience in using cutting-edge technology to develop tailor-made solutions, together with our clients to protect the people who are potentially affected by these natural catastrophes.

“The successful launch of this product can serve as an important example for other regions affected by similar natural disasters.”

The insurance solution can also track typhoon paths and wind speed in real-time, providing automated claims to users based on public data from the national meteorological centre of China, and then makes the payout within three days.

The self-service automated claims system works through an inquiry page – where, after a typhoon hits, customers can check if claim terms have been triggered and then submit a claim which is automatically calculated and settled within three days.

Parametric insurance solutions offer regions vulnerable to catastrophes with rapid payout post-event, and in turn promote faster post-event recovery, enabling businesses and individuals to recover more quickly.

The maximum payouts offered are RMB 20,000 (roughly $2,941) for individuals and RMB 500,000 (roughly $7,353) per address for enterprises.

Mike Mitchell, Head of Property and Specialty Reinsurance, Swiss Re, added; “China is a vast country that experiences diverse natural disasters, but has a low level of insurance coverage, which leaves a significant protection gap.

“Swiss Re’s rich experience in catastrophe modelling and strong data analysis capability can help insurance companies to better evaluate risk and price their products.

“Products such as this help accelerate economic recovery after natural disasters, and allow people to return quickly to normal life.”

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