Regular readers know we love a parametric trigger where the data inputs are sensor-derived and located on-site for the insured or covered party. Hailios is doing this for hail coverage, an area where significant gaps in insurance protection are often evident.
Hailios has developed its own sensor technology for sensing and measuring hail stones and this can be installed at policyholder locations.
The company has now partnered with broking group McGowan Risk Specialists (MRS) to offer parametric hail insurance designed to solve insurance coverage gaps.
Hail has fast become one of the most damaging weather perils, both in the United States and other regions of the world such as Europe and Australia.
It’s a peril where losses faced by the insurance and reinsurance industry have been growing as well, as more severe and large hail events are reported in regions where economic activity and exposure levels have been rising very quickly.
As a result, Hailios has noted that in hail prone states of the US it can be challenging to buy adequate protection against hail damage and premiums, deductibles and policy exclusions have all been rising.
The company has developed the world’s first compact, wireless hail detection and analysis system, and using its technology is acting as a third-party data provider to parametric hail insurance being offered by MRS.
They use a combination of their ground-level truth sensors and intelligent data-gathering networks to derive insights into hail storm activity and sense large hail capable of causing property damage.
The parametric product being offered by MRS to clients is an index-triggered form of insurance with Hailios serving as the third party data source, with each policy having set parameters for payouts and if hail beyond a particular size is detected, which has the potential to cause damage, payment is immediately available.
Hailios explains that this is covering the economic loss, not an insurable one, so covering ground-up or from whatever point the policyholder will find the protection most useful.
This parametric insurance can even be used for covering the risk of cosmetic damage to properties, something that is often excluded under a traditional insurance policy.
Hailios’ technology monitors hailstone sizes through 3-D networks and onsite hailstations, the Hailios Eyewitness unit.
These compact, wireless and solar powered units can be placed almost anywhere to record hail sizes and when combined with the parametric insurance policy can payout immediately once damaging hail is sensed.
In fact, payouts are made available within 7-10 days, which Hailios notes is, “because parametric insurance, made possible by hyper-accurate sensor data and advanced analytics, eliminates the need for costly insurance adjusters to be sent out to assess the damage.”
Rob McMullan, Vice President of Business & Corporate Development at Hailios, further explained, “Our partnership with McGowan will allow us to better address the hardened market for hail insurance for more business and multi-family building owners through parametric insurance coverage that our innovative technology underpins. Teaming up with one of the biggest and most respected wholesale brokers in the United States is an important achievement for Hailios as a company, but it’s an even bigger one for the business community given its growing need for solutions like ours that substantially enhance climate resilience.”
Austin James, Associate Director at McGowan Risk Specialists, added, “By inventing a compact and scalable ground-truth hail sensor that is much more accurate than using radar or satellite-based systems for hail detection, Hailios has done something that no one else has managed to do. The next closest technology is vastly more expensive, bulky and far more difficult to set up. There’s good reason for the buzz around Hailios now — they’ve won substantial industry acclaim and awards for their tech — so we’re proud to be partnering with them to bring parametric hail coverage to clients who otherwise might not be fully covered.”
It’s another prime example of responsive risk transfer, powered by on-the-spot data recorded by sensors and parametric triggered insurance policies.
While incredibly useful for property owners in hail exposed regions, as well as commercial entities such as auto dealerships and the like, sensor driven parametric hail insurance could also be a boon for industries such as the solar power sector, or anyone else for who hail at a specific location can cause a significant financial impact.