(Image credit: Hans Braxmeier/Pixabay.)
AXA Climate (Paris), a managing general agent of the global insurance and reinsurance group AXA XL (Stamford, Conn.) focused on climate risk, has chosen CoreLogic (Irvine, Calif.) as a strategic data provider for the expansion of the insurer’s Hail Protection parametric product. The product, launched in 2019, is designed to help businesses, such as condominiums, golf courses and greenhouses, recover from financial losses such as property damage or business interruption following a hail event.
According to the National Oceanic and Atmospheric Administration (NOAA), 18 billion-dollar disasters have hit the U.S. so far in 2021. Seven of these events included episodes of severe hail. With large losses due to hail occurring each year, insureds are experiencing a hardening market with higher deductibles and premiums, a CoreLogic statement notes.
“AXA Climate constantly strives to streamline its user experience and reduce any potential basis risk in its parametric offers. Working with CoreLogic allows us to do both,” comments Antoine Denoix, CEO, AXA Climate. “Hail is our starting point, but we see the potential to collaborate further with CoreLogic to support actors engaged in sustainable transitions.”
Better Decisions in Parametric Policy
When an insured experiences a hail event, CoreLogic uses its proprietary technology to capture the event and report the maximum hail size at the insured location and the surrounding area, the vendor statement explains. This Hail Verification Report is then the reference in determining whether a parametric policy gets triggered. No loss adjustment is needed as payouts are pre-defined with the insured as a function of the maximum hail size declared in the Hail Verification Report.
“CoreLogic is powering AXA Climate to make better decisions in parametric policy through data-driven insights in hail location and severity,” says Mick Noland, managing director, CoreLogic. “CoreLogic can help AXA Climate enable shorter cycle times for policyholders, all while helping those policyholders find, buy and protect the homes and businesses they love.”