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Parametric insurance solutions

Accelerating natural catastrophe recovery forward

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    There is no question: natural disasters are becoming more frequent and severe. The impact on homeowners and businesses can be devastating. Traditional insurance provides valuable protection for these flood, wind, fire, and other perils – but it can often not be enough. Homeowner and businesses frequently have a need for immediate funds to meet urgent needs, even before claims can be settled. This ‘liquidity gap’ can help be filled by special insurance designed expressly for faster payouts

    Insurance with a parametric trigger can provide fast, pre-determined payouts

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    Parametric insurance solutions

    Munich Re US offers innovative parametric solutions that help bridge these liquidity gaps. This coverage can be an important complement to traditional insurance – which requires physical damage to trigger coverage, does not cover all economic losses, and can mean high out-of-pocket expenses and deductibles. Parametric insurance is paid out rapidly, based on a series of automatic triggers.

    Parametric triggers

    • Triggering event recorded by National Hurricane Center (wind velocity, etc.)
    • Completing a quick proof of loss process (no adjustors/estimates)
    • Transparent, unbiased triggers

    Fast coverage for expenses

    • Evacuation
    • Debris removal and landscaping
    • Loss of income due inability to work (e.g., due to lack of electricity, inability to travel)
    • Deductible cost on traditional policy
    • Damage to property excluded with traditional policy
    • Rebuilding costs using resilient building practices
    • Business interruption expenses

    We also offer turnkey, white label parametric insurance, including full-service implementation.

    Contact our experts today
    Jason Dunn
    Jason Dunn
    Senior Digital Product Manager
    Munich Re US
    Thomas Reiml
    Thomas Reiml
    LatAm

    Further information

    Note: Munich Re parametric insurance coverage pays only for loss and is based on triggers. Triggers are reliant on both 1.) The applicable weather index and, 2.) loss. Payments are made rapidly but are never immediate due to this loss condition.

    This material is for information purposes only. Any descriptions of coverage contained in this material are meant to be general in nature and do not include nor are intended to include all the actual terms, benefits and limitations found in an insurance policy. The insurance policy and not this document will form the contract between the insured and insurance company and governs in all cases. Munich Re and its affiliates disclaim any and all liability whatsoever resulting from use of or reliance upon this material. 

    Products and services provided by Munich Reinsurance America, Inc. (“Munich Re US”) and its affiliates. Any descriptions of coverage contained in this website are meant to be general in nature and do not include nor are intended to include all of the actual terms, benefits, and limitations found in an insurance policy. The insurance policy and not any content reflected on this website will form the contract between the insured and insurance company, and governs in all cases. This insurance product is not affiliated with the National Flood Insurance Program.