Swiss Re has partnered with Ping An Property & Casualty Insurance, launching China’s first mobile-enabled typhoon property parametric insurance solution, giving customers who may be individuals or enterprises the ability to purchase insurance, make inquiries and complete the claims settlement process from a mobile device.
As well as providing technological support and reinsurance service from Swiss Re, the solution uses the company’s catastrophe models and data on natural disasters in order to generate precise quotes to Ping An's customers, says the global reinsurer in a statement.
This product offers a maximum payout of CNY20,000 (US$2,940) per address for individuals and CNY500,000 per address for enterprises.
The insurance covers eight coastal provincial regions in Southeast China, that are prone to typhoons, including Guangdong, Zhejiang, Shanghai, Fujian, Jiangsu, Guangxi, Shandong and Hainan.
The mobile-enabled insurance solution provides real-time tracking of a typhoon’s path and wind speed as announced by the national meteorological centre of China. The trigger for the payout amount will also be based on the information provided. When a typhoon occurs, a user can access an inquiry page, check if the claim terms have been triggered and submit a remote self-service claim. The system then automatically calculates the claim amount and settles the claim within three days.
"Typhoons are the most often and costliest natural catastrophes which occur in China. They can cause severe life and property loss in economically developed and densely populated regions. We want to leverage on our experience in using cutting-edge technology to develop tailor-made solutions, together with our clients to protect the people who are potentially affected by these natural catastrophes. The successful launch of this product can serve as an important example for other regions affected by similar natural disasters," said Mr John Chen, President of Swiss Re China.
Swiss Re has been active in offering Nat CAT solutions in China. In August 2016, the reinsurer entered into a reinsurance protection scheme with the government of Heilongjiang Province and Sunlight Agriculture Mutual Insurance to protect farmers against financial risks from floods, excessive rain, drought and low temperatures. It was the first time that the Chinese government employed a commercial farm insurance programme. It was also the first tailored solution combining a weather index product with a satellite-based flood parametric product.