Axa Climate to Use RMS HWind for parametric policies

Axa Climate, a division of the Axa Group specialising in climate change adaptation, will include HWind analytics from risk modeller RMS as a trigger metric for its relevant parametric insurance policies.

HWind produces real-time data sets for tropical cyclone events, allowing quick evaluation of hurricane trigger/pay-out conditions, which enables parametric policyholders to gain rapid access to capital following impactful events.

RMS HWind solutions offer coverage over the Western North Atlantic, Eastern Pacific, and Central Pacific basins.

Using RMS HWind helps Axa Climate to be flexible as to how and where it structures parametric policies.

Amaury Dufetel, head of Insurance, Axa Climate, said: “We believe the preciseness of sophisticated real-time data is essential to improve the use and uptake of parametric insurance solutions.”

“Data coming from independent reputable organizations like RMS HWind solutions… will allow us to structure innovative parametric covers and bring to our clients the best tailormade Tropical Cyclone coverage both in terms of price and claim settlement.”

Charlotte Acton, senior director, RMS, added:  Parametric insurance is another example of how the insurance industry can help build resilience into economies, which in turn helps reduce the protection gap. RMS remains committed to supporting insurance innovation, in our products, for our clients, and for their end users.”