Sompo International Holdings has announced that it now offers a new suite of weather-driven risk management products suited for the real estate and hospitality sectors.
According to a release, the products will provide coverage for loss of revenue “from variations in weather variables.” Each product can be customized to suit the risk exposures of an individual client and the coverage can be structured as a standalone solution or can be a supplement to an existing program to provide a deductible buy-down, which can considerably reduce or eliminate the deductible if a catastrophic event (such as a hurricane) occurs. Alternatively, it can be used to provide coverage for hotel cancellations or other similar business interruption costs.
Contracts are indexed to site-specific weather variables, which include temperature, rainfall, snowfall, and hurricanes – as measured and reported by meteorological agencies around the globe. The insurance protection is offered for both single locations and property portfolios, and can range in duration from a couple of days to several years.
“This was a great opportunity for us to marry our deep expertise in the real estate and hospitality industries with the breadth of specialty coverages that Sompo International offers,” said Sompo Global Risk Solutions CEO Michael Chang. “By partnering with our global weather team, we are able to offer our clients unique and cutting-edge products to provide financial security in light of increasingly frequent and severe weather events.”
“Working with our Sompo Global Risk Solutions colleagues, we have developed new products tailored to the specific circumstances that keep property owners awake at night,” commented Sompo Global Weather president Martin Malinow. “Weather variations and catastrophic events can have a significant impact on profitability in these sectors and by customizing our weather risk management solutions we are able to directly address their unique needs.”