Flood parametric insurance
Pays out when river discharge passes a return-period threshold, or when satellite imagery shows water over the insured location.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- River discharge exceeding a return-period threshold, or surface-water inundation covering the insured location.
- Parametric trigger
- Modelled river discharge or SAR-derived inundation extent.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Grid cell, per event
- Data and model
- Gumbel/GEV extreme-value distribution (USGS flood-frequency practice).
- Typically for
- Construction & infrastructure Cities, public bodies & NGOs
Bought by the same clients
Related 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.