Willis, a business of WTW, and Swiss Re Corporate Solutions announce an innovative parametric insurance policy that is activated automatically when a Red Weather Warning is issued by the UK Met Office or Met Éireann. The policy is designed to provide coverage based on the weather forecast itself, rather than relying on the traditional trigger of physical damage caused by the actual event. This is a market-first for the UK and Ireland. Traditional insurance policies typically do not cover the cost of pre-emptive actions taken by organisations following the issuance of a severe weather warning, even though these actions—such as elective closures or event cancellations—have a financial impact. This new parametric structure fills that gap. The concept behind the product is that “the forecast is the event,” meaning forecasted high winds, rain, snow, or ice serve as the defining event for policy activation. The policy has broad application, particularly within the hospitality sector, where events or facilities are often closed due to warnings during busy periods. Claire Wilkinson, Managing Director of Alternative Risk Transfer Solutions at Willis, says: “By triggering the parametric policy on the forecast rather than the event, the insured receives a pre-agreed payout that can cover lost revenue and operational costs due to actions taken in anticipation of weather-related disruption, even if the event does not manifest itself as was forecast. The parametric style of the policy provides a transparent basis of cover, rapid claims settlement and complete flexibility in the use of claims proceeds.” Nina Arquint, CEO UK & Ireland at Swiss Re Corporate Solutions, adds: “We are very pleased with the launch of this innovative solution for our UK- and Ireland-based clients as extreme weather events are increasingly impacting their businesses. I believe this also demonstrates that parametric insurances have established themselves well in the European markets and Swiss Re Corporate Solutions is committed to leveraging its expertise in this space to help close protection gaps.”
