Against Extreme Cold Risks

Protect your business from the financial impact of prolonged cold and freezing conditions with tailored, data-driven parametric coverage.

Extended periods of cold and freezing weather can disrupt operations, increase costs, and depress demand—hurting turnover and cash flow. Our parametric insurance solution addresses these issues and reduces the financial volatility that cold spells create. It can also protect against losses that may fall outside a standard policy.

Traditional insurance often requires extensive proof that the weather was severe, that it caused a loss, and the exact amount of the loss. Our approach is different: if a pre-agreed cold trigger—measured at a specified local weather station—is met, the policy pays automatically. You decide how cold it needs to be (or how many cold days you can tolerate) and how much compensation you need to recoup losses.

Key mechanics are simple and transparent: measurements are taken from the nearest meteorological station(s) named in your policy; the cover can run for any number of days, as an annual or even multi-year term; premiums are due 20 days prior to inception, and valid claims are paid 14 days after expiry.

Why Our Parametric Coverage is Different

Light documentation, clear payouts

Objective data: Triggers rely on measurements from designated local weather station(s).
No lengthy loss adjustment: When the agreed threshold is breached, the policy pays.
Designed around your business: You choose acceptable cold tolerance (days or °C) and the payout needed.

Transfer cold-weather financial risk to the insurer and plan with confidence; the volatility-reducing benefits can be disclosed to investors.

How It Works?

Day-Based Model: Define a deductible (days). After that number of cold/freezing days occurs, each additional cold day that is below the agreed excess temperature pays a fixed amount, up to the maximum limit.
Temperature-Based Model (°C): Define a deductible (°C) for the period. Once undershot, the policy pays an agreed amount per °C below that deductible, up to the maximum limit.

Operational details: Premium due 20 days before inception; valid claims paid 14 days after expiry; the station(s) used for measurement are listed in the policy.

Key Policy Parameters

These building blocks define how your parametric cold cover behaves:

Period: Inclusive dates from inception to expiry.
Location: Latitude/longitude of the risk or territorial limits for a portfolio.
Deductible – Day: Predetermined number of cold/freezing days before payouts begin.
Deductible – Temperature (°C): Predetermined °C threshold to be undershot before payouts begin.
Excess: The °C level at/below which the policy starts to pay.
Limit: Amount paid for each qualifying day or per °C beyond the trigger, after deductible.
Maximum Limit: The maximum total payout during the policy period.
Meteorological Station: Named local station(s) from which all measurements are taken.

Measurements always come from the nearest appropriate station(s) listed in the policy; a station panel can be used for multiple sites.

Frequently Asked Questions

Parametric insurance is straightforward. Here are the most common questions we receive about cold coverage:

Questions

If the temperature never reaches my trigger, do I get my premium back?

No. As an insurance policy, it pays only if the insured peril occurs.

What if temperatures at my site differ from the weather station?

We can include the most suitable station(s) and even a station panel for portfolios. If it’s colder at the station than at your site and the trigger is met, we pay—and vice versa if it’s warmer at the station.