Heatwave parametric insurance
Pays out when daily maximum temperatures stay above the seasonal 90th percentile for the agreed number of days.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Sustained period of daily max/mean temperature exceeding a high threshold.
- Parametric trigger
- Daily max temperature, consecutive days above seasonal 90th pct.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Grid cell, daily
- Data and model
- Gumbel/GEV extreme-value distribution (temperature-extreme return periods).
- Typically for
- Events, tourism & leisure Cities, public bodies & NGOs
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.