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 the largest constellation of synthetic aperture radar (SAR) satellites. By combining satellite imagery with auxiliary ground-level information, the company delivers 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.
Commenting on the announcement, Angus Kirk, CEO, Global Parametrics, said: "Our mission is to build economic resilience by extending protection to vulnerable and underserved markets and communities. 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."
ICEYE delivers unmatched persistent monitoring capabilities for any location on earth. Owning the world's largest synthetic-aperture radar satellite constellation, the company enables objective, data-driven decisions for its customers in sectors such as insurance, natural catastrophe response and recovery, security, maritime monitoring and finance. ICEYE's data can be collected day or night, and even through cloud cover.
About Global Parametrics
Rethinking risk to build more inclusive resilience: Extreme weather events and natural hazards are being intensified by climate change, increasing the frequency and intensity of economic shocks which disrupt business and threaten livelihoods.
Established in 2016, Global Parametrics is a specialty provider of parametric solutions for natural hazard and extreme weather risk with a particular focus on emerging economies and vulnerable and underserved communities. Working with the private, public and third sector, GP uses its innovative climatic, seismic and financial risk modelling to rethink resilience for a new era of risk.