Major firms join forces to back NYC parametric flood pilot
Parametric solutions for the public sector
For Swiss Re’s Higgins, parametric insurance provides key benefits to low-income households hit by flooding. The insurer is also exploring the possibility of replicating the program in other cities.
“The beauty of parametric is that it is flexible in terms of its use of funds, unlike the traditional indemnity product, where you have an adjuster that goes out to a specific property and assesses damages,” Higgins said.
“We are looking to see how we can adopt this to other cities across the United States that have similar challenges. It can help people understand that insurance can be part of the recovery solution, especially when in a city that has limited resources.”
Clark of Guy Carpenter agreed: “This timely financial support is critical in the aftermath of a disaster, as water sitting for long periods of time exacerbates mold damage, delays people’s return to work, and forces them to make difficult choices between other funding needs such as healthcare, food, and so on.”