View this article online: https://www.insurancejournal.com/news/international/2015/11/18/389322.htm
Specialist insurer Beazley launched in Australia “Weather Guard,” an insurance policy to protect Australian businesses from weather-related revenue shortfalls.
Weather Guard covers weather-related perils that have historically not been offered cover, Beazley said in a statement. “This means it can be used for weather-triggered sales promotions and prize giveaways as well as the more traditional uses for weather insurance, such as stabilizing revenue or managing unplanned additional costs,” the company added.
The product is supported by Beazley’s access to a weather database that sources information from over 5,500 weather stations worldwide, providing information from the past 40 years, the company said, noting that this enables Beazley’s underwriters to assess the weather risks faced on any date throughout the year and tailor cover to the specific risk.
“Just one example of how this product could be used is by hotels and resorts,” explained Katie O’Neill, contingency underwriter at Beazley Australia.
“The hotel could take out a Weather Guard policy that allows them to provide guests with an accommodation voucher for a complimentary future stay if the guest experiences consistently terrible weather during their current visit,” she said.
“In this way, our insurance product turns an unfortunate circumstance that is largely beyond the insured’s control and an unhappy customer into an opportunity for the hotel to build a loyal customer base and promote their brand,” O’Neill added.
The insured has control over the peril covered – such as rain, snow and temperature – as well as trigger level and duration, which means this insurance can be tailored to the individual needs of a client, Beazley noted.
Commenting on the new product, Damian Kerin, head of contingency at Beazley Australia said, “Weather Guard is not one size-fits-all and Beazley underwriters work with clients to adapt and craft the Weather Guard cover, so it is tailored to your client’s individual needs.”
Beazley said the principal beneficiaries of the product’s coverage options are businesses that are highly seasonal and rely “on a brief window for the bulk of their sales.”
Another key segment would be organizations that incur additional costs as a result of exceedingly bad weather.
“A beachside café or ice cream shop may experience significant losses if there is a cold front in the middle of summer. Similarly, schools, hospitals and care facilities may experience higher energy costs after longer than usual periods of hot weather,” Kerin added.
“These organizations can use a Weather Guard policy to protect their profits against these additional costs,” he said.
Source: Beazley