AXA Climate, a managing general agent of AXA XL, has selected CoreLogic to expand its parametric hail protection product. The product will utilize CoreLogic’s proprietary data to help businesses recover from financial losses such as property damage or business interruption following a hail event.
After a successful initial loss of the parametric hail product in 2019, AXA Climate will now make the product available to condominiums, golf courses and greenhouses, among others.
Seven of the eighteen billion-dollar disasters that hit the US in 2021 included episodes of severe hail, according to the National Oceanic and Atmospheric Administration. With large losses due to hail occurring every year, insureds face a hardening market with higher deductibles and premiums, CoreLogic said.
“AXA Climate constantly strives to streamline its user experience and reduce any potential basis risk in its parametric offers,” said Antoine Denoik, CEO of AXA Climate. “Working with CoreLogic allows us to do both. Hail is our starting point, but we see the potential to collaborate further with CoreLogic to support actors engaged in sustainable transitions.”
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Under the collaboration, when an insured experiences a hail event, CoreLogic will use its proprietary technology to report the maximum hail size at the insured location and surrounding area. This report is the reference in determining if a parametric policy has been triggered. No loss adjustment is needed, as payouts are pre-defined as a function of the maximum hail size declared in the report.
“CoreLogic is powering AXA Climate to make better decisions in parametric policy through data-driven insights in hail location and severity,” said Mick Noland, managing director of CoreLogic. “CoreLogic can help AXA Climate enable shorter cycle times for policyholders, all while helping those policyholders find, buy and protect the holes and businesses they love.”