Parametric insurance contracts for hurricanes offer the promise of quicker payouts and the ability to fill in coverage gaps from traditional insurance, enabling businesses to recover more quickly in the aftermath of an event.
However, commonly used trigger methodologies, such as Cat-in-a-Box, can come with significant basis risk as these approaches only take into account the peak intensity of the storm and do not sufficiently consider the actual wind speeds experienced at a location.
With an extensive network of observational data to reconstruct the wind field of storms at high-resolution, using Moody’s RMS™ HWind cumulative footprints as a trigger helps minimize basis risk.
Get the whitepaper to learn more about:
- How a storm’s wind field gets created every six hours through its life cycle.
- Why HWind footprints are better able to capture complex features of a storm’s structure.
- Case Study: How HWind could have triggered a parametric insurance contract in the wake of Hurricane Ian.