Reinsurance intermediary Aon Benfield has launched a new weather reinsurance product to help insurers protect against weather losses in the United Kingdom.
WExcessm, launched Wednesday, was developed in partnership with Swiss Re and CelsiusPro, a weather risk management specialist. “It is based on official weather data and transparent, flexible triggers which can be tailored to each insurer’s individual risk profile and protection requirements,” Aon Benfield explains.
The product aims to mitigate financial losses incurred from severe weather events, such as the U.K.’s recent harsh winters, Aon Benfield says.
“This index-based product is seen as an alternative to aggregate catastrophe reinsurance cover and can offer lower retention levels than traditional reinsurance solutions,” Kurt Cripps, U.K. and Ireland Team product leader at the company explains.
“The loss which will be suffered by the insurer on the occurrence of the pre-arranged trigger, which can be customised to business requirements, is calculated and agreed at the commencement of the policy on the basis of the insurer’s loss history; no further proof of loss is required in the event of a claim. The trigger is highly transparent and is calculated by leading experts in the weather risk management environment.”