Lightning parametric insurance
Covers equipment and downtime losses when lightning activity around the insured site exceeds the agreed flash density.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Lightning-strike activity exceeding a frequency/intensity threshold.
- Parametric trigger
- Cloud-to-ground flash count/density within a defined radius.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Named asset, daily
- Data and model
- Log-normal distribution — standard lightning flash-density model (lightning-climatology literature).
- Typically for
- Renewable energy producers
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.