Aon, a leading global professional services firm, announced the launch of a new parametric insurance solution designed to address and mitigate losses from hurricane-related storm surge along the coast of the U.S. The new product was developed in collaboration with parametric flood expert Floodbase, and leading global commercial insurer, Swiss Re Corporate Solutions.

According to Aon’s 2025 Climate and Catastrophe Insight report, Hurricane Helene was the single most devastating natural catastrophe event of 2024, estimated to have caused approximately USD 75 billion in economic loss, mainly due to U.S. inland and coastal flooding. For insurers, damage from Hurricanes Helene and Milton resulted in approximately USD 37.5 billion of claims, including pay-outs from public insurance from the National Flood Insurance Program.

“Our data shows that storm surge can be a significant driver of losses for corporates, public entities and (re)insurers alike, so we developed this collaborative parametric solution to help bolster existing levels of cover. The solution can function either as a standalone product or in conjunction with traditional and non-traditional insurance policies, to ensure that clients can secure comprehensive protection for their U.S. storm surge exposures. It is part of a suite of Aon product offerings that together are helping to shape better decisions and more comprehensive sources of liquidity for clients”, said Cole Mayer, head of parametric solutions at Aon.

“Parametric insurance provides a fast, flexible and transparent way to cover financial losses caused by natural catastrophes. A substantial part of hurricane-related losses can be the result of storm surge, and with this innovative solution we can better assist corporations in exposed areas with a rapidly-paying cover that fits their individual risk management strategies", commented Martin Hotz, head parametric natural catastrophe at Swiss Re Corporate Solutions.

“The economic losses in the wake of major hurricanes are staggering. The inherent flexibility of this parametric storm surge product provides U.S. coastal corporations with a much-needed solution to address their specific protection gaps. Floodbase is delighted to have collaborated with Aon and Swiss Re Corporate Solutions to develop this solution, which demonstrates our continuous commitment to uniting technology and risk capital in order to bring more comprehensive protection to cedents”, added Annbjørg Medhaug, chief product and strategy officer at Floodbase.