Willis has introduced a new parametric insurance policy that pays out automatically when a red weather warning is issued by the UK Met Office or Met Éireann.

Developed in collaboration with Swiss Re Corporate Solutions, the product is particularly relevant for hospitality businesses, where red warnings can prompt closures during peak trading periods, even if the worst of the weather does not materialise.

Claire Wilkinson, managing director of alternative risk transfer solutions at Willis, said: By triggering the parametric policy on the forecast rather than the event, the insured receives a pre-agreed payout that can cover lost revenue and operational costs due to actions taken in anticipation of weather-related disruption, even if the event does not manifest itself as was forecast. The parametric style of the policy provides a transparent basis of cover, rapid claims settlement and complete flexibility in the use of claims proceeds.”

Nina Arquint, CEO UK and Ireland at Swiss Re Corporate Solutions, added: “We are very pleased with the launch of this innovative solution for our UK- and Ireland-based clients as extreme weather events are increasingly impacting their businesses. I believe this also demonstrates that parametric insurances have established themselves well in the European markets, and Swiss Re Corporate Solutions is committed to leveraging its expertise in this space to help close protection gaps."

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