Aviva Canada launches new parametric policy
“It was important for Aviva to have a tool that was clear, simple, and efficient to use for our broker partners so that they could deliver effectively and concisely a product that was easily digestible and comprehensible to our collective clients,” said Urs Uhlmann, Aviva Canada’s managing director of global corporate & specialties.
The advantage of parametric insurance policies
Parametric insurance policies differ from traditional insurance policies in that payouts are automatic and quick, available within a few days of a confirmed adverse event occurring. This is triggered based on insured location and official weather datasets issued by recognized global organizations.
Aviva Canada’s new parametric product makes use of rainfall data provided by NASA that has a reporting latency of only two days. It provides two options: “Rain Season” covers against an excess in cumulative rainfall during the risk period, while “Rain Day” covers against excess rain days during the risk period.
Using CelsiusPro’s WLP solution, Aviva is also able to provide additional features such as mobile functionalities, data feeds, an online premium calculator, an offer & policy generator, quote and bind monitoring tools, along with an automatized settlement calculator and a report creator.
The policy is initially being launched as a one-year pilot project limited to a small number of brokers, with plans to scale up in the future. It is aimed at clients in construction, landscaping, and municipalities, with the WLP configured to allow additional parametric products to be installed later on, including coverage against other perils such as cold, heat, and drought.
“We are pleased to have successfully completed the configuration and launch of the WLP for excess rainfall insurance for Aviva Canada,” said CelsiusPro CEO Mark Rueegg. “We believe these insurance products will prove invaluable for businesses with excess rainfall risk across Canada.”
Natural catastrophes have become more frequent in Canada as climate change continues to impact weather patterns around the world. In 2022, these extreme weather events led to $3.1 billion in insured damage, according to a report by the Insurance Bureau of Canada.
