Swiss Re has partnered with Ping An Property & Casualty Insurance Co. of China Ltd. to launch China’s first mobile-enabled typhoon property parametric insurance solution.
This solution is designed to provide an affordable, easy-to-use insurance product for both individuals and enterprises located in areas that are prone to typhoons, and covers the economic losses caused by typhoons, said Swiss Re in a statement.
In addition to the technological support and reinsurance service from Swiss Re, the solution uses the company’s catastrophe models and data on natural disasters to generate quotes for Ping An’s customers.
Swiss Re said the solution gives customers the ability to purchase insurance, make inquiries and complete the claims settlement process from a mobile device. It also provides real-time tracking of a typhoon’s path and wind speed, provided by China’s national meteorological center.
The trigger for the payout amount is also based on this information, Swiss Re said.
The insurance covers eight coastal provincial regions in Southeast China: Guangdong, Zhejiang, Shanghai, Fujian, Jiangsu, Guangxi, Shandong and Hainan.
When a typhoon occurs, a user can access an inquiry page, check if the claim terms have been triggered and submit a remote self-service claim. The system will then automatically calculate the claim amount and settles the claim within three days. This product offers a maximum payout of RMB 20,000 (or Chinese Yuan Renminbi) ($2,940) per address for individuals and RMB 500,000 ($7,350) per address for enterprises.
“Typhoons are the most often and costliest natural catastrophes which occur in China,” commented John Chen, president of Swiss Re China.
“They can cause severe life and property loss in economically developed and densely populated regions,” he said. “The successful launch of this product can serve as an important example for other regions affected by similar natural disasters.”
Using its catastrophe modeling and big data capabilities, Swiss Re said it takes into consideration the insured’s risk exposure, builds an on-line pricing engine based on cloud technology and produces a quote for users of the solution based on the real-time atmospheric circulation information.
“China is a vast country that experiences diverse natural disasters, but has a low level of insurance coverage, which leaves a significant protection gap,” said Mike Mitchell, head of Property and Specialty Reinsurance, Swiss Re.
“Products such as this help accelerate economic recovery after natural disasters, and allow people to return quickly to normal life,” added Mitchell.
Source: Swiss Re
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