Flood Rapid Recovery Insurance

Loss payments within days after a devastating rainfall event, to secure livelihoods and keep businesses running.

Overview

The parametric Flood Rapid Recovery Insurance (FRRI) provides loss payments to policy holders after a devastating rainfall event to secure livelihood or keep business running within days.

The loss payment is defined by the maximum 24-hour accumulated rainfall of grid cells located within the Insured Location. The Insured Location is one or multiple circles with a radius around the Insured Address.

In the trigger event, based on rainfall data from NASA (GPM IMERG), the loss payment is wired to the policyholder's bank account within days.

The main benefits

  • 01No proof of physical loss to your property
  • 02No proof of loss to business income
  • 03Loss payment wired within days directly to the insured
  • 04Loss trigger based on satellite data from NASA (GPM IMERG)
  • 05Transparent product administered through a best-in-class platform
  • 06Backed by a reputable reinsurer

How it works

Parametric insurance pays within days of Excess Rainfall.

The trigger and the payout are agreed before cover starts.

  1. Step 01

    Event measured

    NASA's GPM IMERG satellite dataset gives 3-hourly rainfall on a 10 × 10 km grid. The highest 24-hour sum of each day is that grid cell's Daily Rainfall.

  2. Step 02

    Agreed threshold met

    The Maximum Daily Rainfall of any grid cell within the Insured Location reaches a layer that pays under the Event Coverage Table.

  3. Step 03

    Pre-agreed payout

    The loss payment is wired to the policyholder's bank account within days. No proof of physical loss is needed.

Rainfall map with a 10 × 10 km grid and a circle marking an Insured Location.

Which value counts

The relevant rainfall value for the payout is the Maximum Daily Rainfall of any grid cell within the Insured Location:

Hover over a rule to see it on the map

  • Only grid cells within the Insured Location are considered
  • Grid cells whose centre point lies over the ocean are excluded
  • The highest Daily Rainfall of the remaining cells sets the payout

ExampleIn this example the highest cell over land in the Insured Location has 480mm, in the 300–499mm layer, so the payout is 40% of the sum insured. The 560mm cell lies over the ocean and does not count.

EXAMPLE GRID · DAILY RAINFALL IN mm40701402002603003103004011019026032037039037050130210300370440480440601402303103904805604805013021030037044048044040110190260320370390370OCEANLANDCIRCLE: INSURED LOCATIONHighest over land: 480mm → 40% payout

Event coverage

If excess rainfall is reported in the Insured Location, loss payments are due based on the Event Coverage Table. There may be multiple payouts during the Policy Period; the maximum payout is capped at the Sum Insured.

Max. daily rainfallPayout, % of sum insured
< 100mm1 – 10 year return period—
100 – 299mm10 – 25 year return period10%
300 – 499mm25 – 50 year return period40%
500 – 699mm50 – 75 year return period75%
> 699mm> 75 year return period100%

Policy terms

An example of the terms of an FRRI policy.

Insured Address
Address of client property
Insured Location
Circle around the Center Point
Policy Period
1 year (or season)
Peril
Losses from an Excess Rainfall Event
Daily Rainfall
The highest value of eight 24-hour cumulative rainfall windows, whose start and end times shift by three hours each time: for each day, the maximum of the eight 24-hour values ending between 03:00 and 24:00 UTC
Event
The Maximum Daily Rainfall reported by the Data Provider in the Insured Location for a Rainfall Cluster

Payout example

A business owner in Louisiana purchased an FRRI for the 2006 storm season with a Policy Limit of $500,000. The Insured Location is a circle with a 25 km radius around the business.

Map for Scenario 1: the event and the Insured Location.

An Excess Rainfall Event triggered rainfall of 450mm, the > 50 year return period, at one grid cell within the Insured Location. The business owner received a $500,000 payout.

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