Munich Re launches parametric insurance product with JLT

Broker JLT said on Aug. 24 that its unit JLT Philippines signed a cooperation agreement with global reinsurer Munich Re to jointly develop and offer an insurance solution to cover typhoon/tropical cyclone risks for the Philippines.

With up to twenty tropical storms a year of which several are named typhoons causing devastating losses, there is a serious need for the Philippine businesses to protect themselves against typhoon losses, according to the statement.

The new non-traditional solution, called “One Storm Philippines”, is a parametric trigger typhoon cover. Unlike a traditional insurance product which covers a policyholder's actual losses, parametric insurance pays out fast and uncomplicated in response to pre-defined triggers, the statement said.

The product allows risk holders to outsource previously uninsurable risks arising from typhoons like loss prevention costs, overtime costs, revenue losses, and minor losses below the property insurance deductible. It enables monitoring and measuring triggers that will provide financial support for loss prevention measures while facilitating an uncomplicated and quick payout process. The product is an easily customisable solution that allows manufacturers, plant operators, big corporations, governmental authorities and municipalities to limit their risks. Furthermore, it enables risk holders to check their triggered pay-out in real-time after a storm.

Stephan Laemmle, chief underwriting officer at Munich Re CIP Engineering, said: “This product cooperation between JLT with their excellent market network and Munich Re’s research and product development expertise, showcases our ambition to be at the forefront of product innovation, and thus, shaping future market models responding to the needs and working to the benefit of our clients.“

JLT Philippines CEO, Raul Tan, added: “At JLT Philippines, we have a strong focus on providing innovations to the market and we are extremely proud to have partnered with Munich Re, working effortlessly together to provide our customers with a unique product that that not only protects their assets, but also changes the way insurance is viewed.”

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