Kairos Risk Solutions, a regional risk consultancy firm headquartered in Singapore, in collaboration with Thailand-based insurance broker, CHAZ Insurance Brokers, has finalised a parametric insurance solution designed to protect an offshore aquaculture firm against the impact of typhoons in the South China Sea region.
According to Kairos, this is the first parametric insurance deal to close via its collaboration with CHAZ Brokers.
The Singapore-based, boutique insurance solutions consultancy explains that the client is a prominent, regional company operating in offshore aquaculture, which has experienced challenges with lower yields as a result of typhoons.
To combat this, CHAZ Brokers offered a structured, annual cat-in-a-box typhoon cover that is designed to payout based on severity from Category 2 to Category 5 typhoons.
Kairos reveals that this innovative solution protects the client in two separate locations in the South China Sea region.
Jeffrey Khoo, Chief Executive Officer, Kairos, commented, “Interest in parametric insurance is growing steadily in Southeast Asia. The challenge would be to develop parametric solutions that are economically sensible while adequately addressing the risk exposure of clients.”
The cat-in-a-box remains one of the most popular parametric insurance structures, designed to payout if a catastrophe, such as a typhoon, occurs in a given, pre-agreed area, so long as the cat meets the minimum pre-agreed intensity threshold and goes through the box.
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