Insur8 for typhoon exposure
Typhoon risk is significant: from 1980–2016, 51 recorded signal 8+ typhoons hit Hong Kong.
“Typhoon warnings are a significant cause of economic loss in Hong Kong. With Insur8, businesses can quickly access liquidity and manage earnings volatility for non-damage interruption.”
CEO North Asia Swiss Re Corporate Solutions
According to the Swiss Re Institute,
the overall economic impact of a signal 8+ typhoon
on Hong Kong’s GDP is estimated at
HKD 4.29 billion (USD 627 million) per day.
Many property insurance policies cover physical damages related to typhoon loss, but a market gap existed to protect businesses against financial loss due to typhoon warnings. Insur8 is Swiss Re Corporate Solutions’ parametric insurance programme specifically designed to address this non-damage related risk. It protects the insured against lost earnings and operating costs related to level 8+ typhoon warning forced closures.
Because the insurance policy is parametric, protection is received based on the warning issued by the Hong Kong Observatory (HKO) which acts as the policy trigger. This product can also provide flexible and customisable features to meet specific business needs.