The FINANCIAL -- Swiss Re has partnered with Ping An Property & Casualty Insurance Company of China, Ltd to launch China's first mobile-enabled typhoon property parametric insurance solution.
In addition to the technological support and reinsurance service from Swiss Re, the solution uses the company's catastrophe models and data on natural disasters to generate precise quotes to Ping An's customers.
This innovative solution is designed to provide an affordable, easy-to-use insurance product to both individuals and enterprises located in areas that are prone to typhoons, and covers the economic losses caused by the typhoon. It gives customers the ability to purchase insurance, make inquiries and complete the claims settlement process from a mobile device, according to Swiss Re.
The insurance covers eight coastal provincial regions in Southeast China, including Guangdong, Zhejiang, Shanghai, Fujian, Jiangsu, Guangxi, Shandong and Hainan.
The mobile-enabled insurance solution provides real-time tracking of a typhoon’s path and wind speed as announced by the national meteorological center of China. The trigger for the payout amount is also based on this information. When a typhoon occurs, a user can access an inquiry page, check if the claim terms have been triggered and submit a remote self-service claim. The system will then automatically calculate the claim amount and settles the claim within three days. This product offers a maximum payout of RMB 20,000 per address for individuals and RMB 500,000 per address for enterprises. It is designed to enhance typhoon response and post-disaster recovery for the high-risk regions.
"Typhoons are the most often and costliest natural catastrophes which occur in China. They can cause severe life and property loss in economically developed and densely populated regions. We want to leverage on our experience in using cutting-edge technology to develop tailor-made solutions, together with our clients to protect the people who are potentially affected by these natural catastrophes. The successful launch of this product can serve as an important example for other regions affected by similar natural disasters," says John Chen, President of Swiss Re China.
Using its catastrophe modelling and big data capabilities, Swiss Re takes into consideration the insured's risk exposure conditions, builds an on-line pricing engine based on cloud technology and produces a dynamic quote to users of the solution based on the real-time atmospheric circulation information. This innovation marks a historic break-through for catastrophe products in China.
“China is a vast country that experiences diverse natural disasters, but has a low level of insurance coverage, which leaves a significant protection gap. Swiss Re’s rich experience in catastrophe modelling and strong data analysis capability can help insurance companies to better evaluate risk and price their products. Products such as this help accelerate economic recovery after natural disasters, and allow people to return quickly to normal life,'' adds Mike Mitchell, Head of Property and Specialty Reinsurance, Swiss Re.