US based general agency AIR Parametric, Inc., in collaboration with Guy Carpenter and Liberty Mutual Reinsurance (LM Re), announces the launch of MilkshakeTM, a groundbreaking parametric insurance product designed to safeguard US dairy producers from heat stress on their livestock herds, causing them to produce less milk.
Milkshake’sTM proprietary design was built in consultation with dairy industry leaders and the specialized agents who serve them. It leverages AIR Parametric’s advanced weather data, engineering and machine learning capabilities to identify a customer’s unique weather triggers based upon their precise location. For the first time, Milkshake’sTM intuitive structure allows the customer and their agent to choose from a range of limits and specific events and is simple to quote and bind without the traditional claims adjustment process.
“We are very proud of our first generation MilkshakeTM product, and we will be adding more distribution partners across the US and in other livestock regions around the globe,” said James Luce, CEO and Founder of AIR Parametric, Inc. “Parametric products are becoming more applicable to the broad commercial marketplace and can help customers of all industries address the economic impacts of weather.”
Poised to revolutionize the insurance landscape, AIR Parametric’s advanced solutions provide commercial customers across multiple industries with financial protection that mitigates the short-and long-term revenue shortfalls and expense overruns of unanticipated, extreme weather events including heat spells, cold snaps and excess rainfall. These weather events do not typically cause physical damage to buildings or equipment but can have devastating effects on a business’ productivity or customer behavior.
“Our advanced data platform allows us to create solutions for any business globally that is negatively impacted by an extreme weather event. We are currently working with agents and customers in an array of business segments to leverage these capabilities to build new programs,” said Luce.” The broader insurance community is just beginning to understand the power of the parametric insurance solution – there are so many ways to use it to solve problems our policyholders are experiencing.”
“Guy Carpenter acted as the sole placing broker for AIR Parametric helping secure A rated capacity in a challenging market cycle,” said Sam Knee-Robinson, Guy Carpenter’s Innovation & Emerging Risk Practice. “AIR’s new dairy heat stress product is designed to address a protection gap in the agricultural industry, protecting farming businesses from extreme temperature fluctuations which impact revenue.
Jean-Christophe Garaix, Head of Agriculture and Parametrics, LM Re said: “We are really pleased to be involved in bringing this unique solution to US dairy producers. There is no alternative cover for the implications of this weather trend, which as a result of climate change, is becoming increasingly challenging. This solution closes the protection gap, providing essential, timely financial relief in the event of extreme weather conditions.”
Hannah Clift
Liberty Mutual Reinsurance
+44 7485 929 735
Hannah.Clift@LibertyGlobalGroup.com
Sian Bradshaw
H/Advisors Cicero
+44 772 838 2373
liberty@cicero-group.com