ICEYE teams up with Global Parametrics on flood data solution
ICEYE has entered an agreement with Global Parametrics to provide flood data to support the development of innovative parametric risk transfer solutions.
As part of the agreement, ICEYE’s global Flood Insights data will be used by Global Parametrics to design, structure and execute parametric risk transfer structures. Furthermore, in the event of a flood, Global Parametrics will use ICEYE’s Flood Insights data to determine if a specified threshold has been met and the cover is triggered.
ICEYE owns and operates a constellation of synthetic aperture radar (SAR) satellites. By combining satellite imagery with auxiliary ground-level information, the company claims to deliver reliable, consistent, and accurate insight into the extent and depth of major flood events around the world, in near real-time.
Parametric products provide a highly responsive and effective structure for enhancing the resilience of communities vulnerable to the growing risk of flood. Offering speedy payments to those impacted when a specific trigger threshold in the contract is reached or exceeded, such risk transfer solutions serve to minimise disruption and facilitate faster recovery.
“Our mission is to build economic resilience by extending protection to vulnerable and underserved markets and communities,” said Angus Kirk, chief executive of Global Parametrics. “Advancements in parametric risk transfer mechanisms are critical to that mission. Integrating ICEYE’s flood hazard data into our risk transfer structures supports the development of more responsive solutions to mitigate the financial effects of extreme climate and natural disasters.”
Stephen Lathrope, global head of insurance, ICEYE, added: “By providing our high-resolution data to Global Parametrics in near real-time for floods around the world, we aim to help significantly reduce the time from impact to payment for communities affected. As a shifting climate escalates the flood threat, the ability to deliver such timely financial support and bolster resilience at the community level is becoming ever more critical.”