STORM: Parametric insurance to close the tropical cyclone protection gap

Regardless of the exact term – hurricanes, typhoons, cyclones – these powerful storms leave behind damage and destruction that can linger for years, and leave businesses, public entities, and communities looking at long roads to recovery.  Those exposed to tropical cyclones are often responsible for a multitude of incurred costs in the storm's aftermath, including covering traditional insurance coverage gaps, or uninsured losses, such as revenue disruption or emergency response expenditures.  This is where our STORM insurance can help.  STORM can either complement a traditional programme or offer standalone coverage for uninsurable or underinsured physical and financial exposures, helping you get back to "business as usual" faster.

What is parametric insurance?

In a parametric insurance policy, the loss amount is pre-agreed. The policy pays out when an event – in this case, a tropical cyclone related wind speed – meets or exceeds a certain level.  For STORM, we use the highest wind speed reported at the insured's location(s) during the duration of a tropical cyclone. Discover more of our parametric insurance.

By using the reported wind speeds at the insured's location(s), STORM is designed to closely mirror what the customer experiences during the storm.  Just days after a tropical cyclone makes landfall, we receive a high-resolution wind map. We find the highest one-minute sustained windspeed during the hurricane at the policyholder's location(s), and determine payout based on this wind speed.  This allows for policy holders to recover proceeds for tropical cyclones that have a meaningful impact at their locations.

We team up with the leading tropical cyclone windspeed data providers worldwide. In the Atlantic (U.S and the Caribbean) the Eastern Pacific and the Central Pacific, we use Moody's RMS HWind. In other parts of the world, we use Reask.

Why choose STORM?

STORM is a fast, flexible and transparent insurance product that gets you cash in hand when you need it the most – in the immediate aftermath of a devastating and disruptive tropical cyclone.

Key facts and benefits:

Payout: Typically within 30 days following an event.

Broad coverage: Payouts can address direct property damage, excess operational expenses, lost revenue, and other immediate needs.

Proof of loss: Simple confirmation of total loss amount, signed by an officer of the company; no receipts required.

Further Information

Comprehensive guide to parametric insurance eBook