Chaucer has launched parametric cover for weather-driven business interruption losses from events that fall outside a pre-established range of variables such as temperature, wind speed or precipitation.

A specialist US-based team will provide all underwriting capacity for the new venture.

Led by Dr Ed Byrns, who previously held leadership roles at Citadel and Louis Dreyfus, Munich Re Weather Group and Demex Group, the team will be supported by other experts in the weather risk management space.

“I’m excited to be working with Chaucer at this pivotal time for the weather insurance market and creating new products with clients at the heart of it,” Byrns said. “The growth in weather related insurance has been accelerated by climate change and as risks posed by unexpected weather patterns become more frequent, the need for insurance products is becoming more pronounced.”

Duncan Gemmel, chief strategy officer at Chaucer, added: “We are delighted to have Ed Byrns working with us to lead our entry into the growing weather insurance market. He brings a wealth of knowledge and expertise and will help deliver the solutions that our clients need.”

In 2022, Chaucer partnered with parametric insurance provider K2 Parametric to provide hurricane and earthquake damage cover for US mid-size corporates and municipalities.

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