Reask partners with Kettle on parametric hurricane reinsurance

Natural hazard modelling specialist Reask has agreed a partnership with insurtech MGA Kettle that will enable Kettle to offer location-level, wind speed-based parametric hurricane reinsurance in the US.

Reask delivers global tropical cyclone models to clients such as Swiss Re, AXA, parametric insurer Descartes, and ILS firms Securis and Twelve Capital.

Kettle initially specialised in underwriting and reinsuring  wildfire risks in the United States. The new partnership allows it to expand its climate-related offering to include parametric hurricane reinsurance via Reask’s hurricane modelling product Metryc.

The data supplied by Reask will help Kettle to calculate premiums, as well as enabling it to settle pay-outs within 24 hours of an event.

David Schmid, head of Parametric Products at Reask, said: “This collaboration marks the beginning of a new era in which Reask will contribute significantly to the advancement from first generation distance-based parametric covers to more accurate and cost-effective intensity-based parametric products.”

Commenting on the new partnership, Brian Espie, CUO at Kettle, added:“Kettle and Reask share a mutual vision that AI and machine learning allow for better prediction of risk in a changing climate. The seamlessness of this partnership provides Kettle with the ability to accelerate our product innovation and provide bespoke coverage solutions for customers in the greatest areas of need.”

“Our partnership with Kettle is a win-win situation; we supported them in significantly shortening their go-to-market period, while they facilitated our expansion in the US market,” David Schmid added.