Swiss Re has partnered with Chinese P&C insurer Ping An to launch a mobile-distributed parametric insurance product for typhoons.
The insurers developed the product by using catastrophe modeling and big data to evaluate risk exposure conditions. Consumers can purchase insurance, make inquiries and complete the claims settlement process from a mobile device using a cloud-deployed pricing engine. Claims are based on real-time atmospheric circulation information.
Swiss Re provides technological support and reinsurance service, as well as catastrophe models and data on natural disasters, while Ping An handles the distribution and customer service. When a typhoon occurs, if the policyholder is in an affected area, they are immediately paid a maximum of ¥20,000 (about $3,000) for individuals and ¥500,000 (about $74,000) for businesses, based on the terms of the policy.
“China is a vast country that experiences diverse natural disasters, but has a low level of insurance coverage, which leaves a significant protection gap,'' says Mike Mitchell, Head of Property and Specialty Reinsurance, Swiss Re. "Catastrophe modelling and strong data analysis [capabilities] 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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