ICEYE, a provider of satellite data and services to inform decision-making and analysis, and Global Parametrics, the parametric and index-based disaster risk transfer company, have entered into a flood data agreement to support the development of innovative parametric solutions.
Under the arrangement, Global Parametrics will leverage ICEYE’S global Flood Insights data to design triggers, structure products, and execute parametric risk transfer structures.
When a flood event occurs, Global Parametrics will use ICEYE’s flood data to determine if a specified threshold has been met and the cover is triggered.
ICEYE owns and operates the largest constellation of synthetic aperture radar (SAR) satellites, and when the imagery produced is combined with auxiliary ground-level information, it is able to produce reliable, consistent, and accurate insight into the extent and depth of major flood events around the world, in near real-time.
Stephen Lathrope, Global Head of Insurance, ICEYE, commented, “By providing our high-resolution data to Global Parametrics in near real-time for floods around the world, we aim to help significantly reduce the time from impact to payment for communities affected. As a shifting climate escalates the flood threat, the ability to deliver such timely financial support and bolster resilience at the community level is becoming ever more critical.”
As our readers will be aware, parametric solutions offer a highly responsive and efficient structure which can help to enhance the resilience of communities around the world to the growing flood threat.
Angus Kirk, Chief Executive Officer (CEO), Global Parametrics, said, “Our mission is to build economic resilience by extending protection to vulnerable and underserved markets and communities. Advancements in parametric risk transfer mechanisms are critical to that mission.
“Integrating ICEYE’s flood hazard data into our risk transfer structures supports the development of more responsive solutions to mitigate the financial effects of extreme climate and natural disasters.”
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