December 16, 2021
First of-its-kind Insurance for Extreme Temperature
Powered by Demex, Vave is offering parametric extreme temperature insurance to commercial properties in the United States. Demex technology is embedded into Vave’s new policy offering and enables property-level temperature risk assessment and protection.
Extreme temperature protection will deliver up to $1,000 in cash relief to small-to-medium enterprises in the case of extreme cold. Cold weather claims help manage the immediate effects of lost revenue and unexpected costs.
The map above shows how Vave’s policy would have triggered automatic cold weather claims by location in February of 2021 if this policy had been in place. The claims are colored from dark green to dark blue, with dark green represented the minimum claim payment and dark blue identifying locations that would have received the maximum payment. Light green and light blue show mid-range claims.
Applied to last winter, Vave’s policy would have provided up to $1,000 of immediate relief for small businesses in much of the Midwest, Great Plains, and Texas, the regions marked in dark blue. For a business like a bingo hall in Texas, an extreme cold policy would have provided immediate relief to cover the lost week of business during February’s deadly winter storm.
Vave’s Head of Product Robert Porter said, “The addition of Demex parametric weather cover to the Vave Commercial Property Product will give small businesses increased peace of mind that they can continue to operate following extreme weather. Our collaboration with Demex continues the Vave tradition of finding innovative ways to offer consumers enhanced coverage.”
Andrew Freedman from Axios wrote a nice summary:
“Your home or business insurance could soon come with innovative options for extreme weather thanks in part to platforms developed by climate risk management companies like The Demex Group.” — Andrew Freedman, Axios