Swiss Re Corporate Solutions announced the launch of a parametric hail insurance cover last week.

Known as HAIL, the new product is designed to protect companies in the United States from the financial impact of a significant hail event, such as physical damage, lost revenue due to business interruption, or significant retentions in traditional property policies.

CoreLogic, a provider of hail data in the United States, will serve as the data provider. SRCS will rely on CoreLogic hail-size metrics to determine whether a parametric policy is triggered.

Similar to other parametric solutions offered by SRCS, HAIL combines the customer location data with a payout table that outlines policy amounts for reported hail size at specified locations during an event.

When a customer has hail damage and the hail size calls for a payout under the policy, there is no need to wait for a loss evaluation. The payment is released soon thereafter. The customer can use the money for any financial loss associated with the event.

HAIL is currently available in 11 states across the U.S.: Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Montana, Nebraska, Oklahoma, South Dakota and Texas.

Source: Swiss Re Corporate Solutions