Aon Benfield, Swiss Re partner on weather reinsurance product
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Aon Benfield has launched a weather reinsurance product to give insurers protection against adverse weather losses in the United Kingdom.
Aon Benfield, the reinsurance brokerage arm of London-based Aon P.L.C., on Wednesday launched WExcess, an index-based coverage developed in partnership with reinsurer Swiss Re Ltd. and weather risk management company CelsiusPro A.G., both based in Zurich.
The coverage is based on official weather data and flexible triggers that can be tailored to buyers' risk profile and protection requirements, Aon Benfield said in a statement.
Buyers of the product will be required to provide information to enable an estimate of at least five years' incurred loss history for weather perils.
“This index-based product is seen as an alternative to aggregate catastrophe reinsurance cover and can offer lower retention levels that traditional reinsurance solutions,” Kurt Cripps, U.K. and Ireland team product leader at Aon Benfield, said in the statement. “The loss which will be suffered by the insurer on the occurrence of the pre-arranged trigger, which can be customized to business requirements, is calculated and agreed at the commencement of the policy on the basis of the insurer's loss history; no further proof of loss is needed in the event of a claim,” he said.
