As climate change fuels extreme weather, Canadian businesses require innovative solutions to safeguard against its potentially adverse impacts. Our Parametric Insurance Solutions address the financial fallout of weather events, offering a direct path to stability for climate-sensitive industries.
What is parametric insurance?
Parametric Insurance provides a pre-defined payout triggered by a specific, measurable occurrences, such as weather events, without relying on the traditional claims process. Coverage is directly tied to an index or parameter, such as rainfall or temperature.
How does it work?
Using historical weather data and live access to satellite and/or weather station readings, our Parametric Solutions Portal provides a 20-year historical benchmark for seasonal norms. When the trigger level varies in your insured area, the portal is notified, and a claim is automatically initiated.
Policies can be purchased for a specific seasonal or adverse weather event, typically ranging from two weeks to five months.
Aviva’s Parametric Solution
Video transcript
Cold snaps. Excessive rain. High temperatures.
The impact of extreme weather on Canadian businesses is undeniable.
Whether it’s bitter cold causing construction delays or floods interrupting supply chains, adverse weather events can hit your bottom line where it hurts.
When extreme weather strikes, you need a solution that gives peace of mind.
That’s where Aviva’s Parametric solution comes in to protect your downside.
Using Aviva’s exclusive Parametric portal, a broker can quickly tailor a policy, using historical weather data and real-time satellite information to meet your needs. Let’s say you run a roofing company. Your broker may suggest a Rain Day solution, based on your circumstances.
In the event of a Rain Day incident, when there are above average rain days during a set coverage period, say 3 days, the weather threshold is triggered.
A claim is then initiated automatically, and the roofing company receives a payout, as per the policy terms, without dealing with the hassle of a claims notification with a standard policy.
Whether you’re concerned with changing heating and cooling costs, customer inconvenience, or other issues unpredictable weather can cause, Aviva’s Parametric solution can protect your business when you need it most.
Visit www.aviva.ca/gcs to learn more.
What does the enrolment and claims process look like?
Let’s look at an example scenario for a roofing company.
Step 1
A roofing company wants to protect their bottom line against the potential financial impact of above-average rain days.
Step 2
Using Aviva’s exclusive Parametric Solutions Portal, the company’s insurance broker quickly tailors a policy for above-average rain days during their busy season, using historical weather data and real-time satellite information to guide decisions. On behalf of the company, the broker can choose where and for how long the extra coverage is in place for.
Step 3
If the number of rain days exceeds the average amount for the selected time period and site location, a claim payout for the roofing company is automatically triggered—quick and hassle-free.
Coverages
Is Parametric Insurance right for your business?
Any industry or business that relies on favorable weather conditions is well positioned to benefit from Parametric Insurance solutions to protect its bottom line. Common industries include:
- Construction
- Property management
- Events
News & insights
Ready to protect your business from climate volatility?
It takes innovative solutions and the stability of a trusted partner. It takes Aviva.
To learn more about parametric solutions within Aviva’s Global Corporate & Specialty division, please contact your insurance broker.
*Covered perils are based on a determined period of time as agreed to in your insurance policy.
Global Corporate & Specialty Parametric policies are underwritten by Aviva Insurance Company of Canada. For exact terms, definitions, limitations, and extensions, please refer to the policy. For more details concerning any of the insurance products, please speak with your Aviva broker. Aviva and the Aviva logo are trademarks used under license to Aviva Canada Inc. and its subsidiary companies.