Event parametric insurance
Protects an outdoor event against cancellation, postponement or a drop in attendance caused by rain, wind or heat at the venue.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Cancellation, postponement or attendance shortfall of an outdoor event from adverse weather.
- Parametric trigger
- Composite precipitation/wind/temperature index at the venue.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Named asset, per event
- Data and model
- Log-normal severity distribution — standard actuarial loss-severity model (Klugman, Panjer & Willmot, "Loss Models").
- Typically for
- Events, tourism & leisure
Weather family
Other weather covers.
Next step
Test the trigger on your own location.
We back-test the index at your site over its full history and come back with indicative terms, before anything is bound.