Swiss Re Corporate Solutions, a division of Swiss Re, has rolled out a parametric water-level insurance solution, known as Flow, in Europe.
The insurance product has been designed to safeguard companies in Europe from the financial impact of high or low river water levels.
The index-based product will enable European firms to lessen the financial impact of high or low river water levels.
The tailored index tracks the client’s water level exposure related to revenues and costs. Each client is offered the tailor-made coverage that is calibrated to the individual exposure level.
Flow can protect businesses against lost revenue due to business interruption or increased costs due to risk mitigation measures.
Other factors such as the increased costs of operation, added expenses to mitigate the situation along with expenditures covered by traditional insurance policies are important to determine the pay-out amounts under the new parametric insurance plan.
Innovative Risk Solutions EMEA head of marketing Thomas Keist said: “The very dry and warm summer of 2018 left the water levels of most rivers in Europe at record lows.
“Decreased production volume and increased transportation costs were the consequence. Since it is at the heart of our business to insure companies impacted by the effects of natural perils such as drought and heat, we developed FLOW to help them cope with risks like the loss of revenue due to business interruption from high or low water levels.”
Currently, Flow is available in Belgium, France, Italy, Luxembourg, Germany, the Netherlands, the Nordics, Portugal, Switzerland, the UK and Spain.