A specialist underwriter has beefed up its weather protection, offering an innovative new product aimed at offering wider protection for revenue shortfalls caused by the weather.
Beazley last week launched Weather Guard, billing it as a “radically new” concept for the Australian market, allowing weather-triggered sales promotions and prize giveaways.
Beazley Australia Contingency Underwriter Katie O’Neill says the product could have many applications in the hotel and resort sector.
“The hotel could take out a Weather Guard policy that allows them to provide guests with an accommodation voucher for a complimentary future stay if the guest experiences consistently terrible weather during their current visit,” she says.
“In this way, our insurance product turns an unfortunate circumstance that is largely beyond the insured’s control and an unhappy customer into an opportunity for the hotel to build a loyal customer base and promote their brand.”
Beazley Australia Head of Contingency Damian Kerin says highly seasonal businesses could also benefit.
“A beachside café or ice cream shop may experience significant losses if there is a cold front in the middle of summer,” he says.
“Similarly, schools, hospitals and care facilities may experience higher energy costs after longer than usual periods of hot weather.”
To underwrite the risk, Beazley relies on a weather database that source data from more than 5500 stations across the world.