Kettle offers parametric hurricane reinsurance using Reask model & data

Kettle, the reinsurance focused deep-learning and artificial intelligence (AI) MGA, has partnered with Reask, provider of catastrophe modelling, climate analytics and data using machine learning techniques and artificial intelligence, to help it expand its offering to include US parametric hurricane reinsurance.

Kettle and Reask are both high-tech users of AI and other technologies, so to see the pair partnering is positive for the continued expansion of the parametric risk transfer space, as we now move towards a stage in that market’s development where more accurate and well-calibrated models are going to be essential for the parametric triggers to gain traction.

Gone are the days of basic parametric triggers now that technology, models and data can more closely match parametric coverage to users needs and exposures.

Kettle has been focused on California wildfire risks since its launch, but this partnership with Reask sees it branching out to underwrite hurricane risks on a parametric basis for the first time.

Kettle is planning to to offer location-level, wind speed-based parametric hurricane reinsurance in the US with the help of Reask’s models and data.

Kettle will use Reask’s hurricane modelling product Metryc to calculate premiums for coverage and settle pay-outs swiftly and efficiently within 24 hours of an event, the companies said.

David Schmid, Head of Parametric Products at Reask, commented, “This collaboration marks the beginning of a new era in which Reask will contribute significantly to the advancement from first generation distance-based parametric covers to more accurate and cost-effective intensity-based parametric products.”

Brian Espie, Chief Underwriting Officer at Kettle, added, “Kettle and Reask share a mutual vision that AI and machine learning allow for better prediction of risk in a changing climate. The seamlessness of this partnership provides Kettle with the ability to accelerate our product innovation and provide bespoke coverage solutions for customers in the greatest areas of need.”

“Our partnership with Kettle is a win-win situation; we supported them in significantly shortening their go-to-market period, while they facilitated our expansion in the US market,” Schmid also commented.

Thanks to Reask’s model and data services, Kettle has been able to rapidly prepare to enter the US parametric hurricane reinsurance space, shortening the go-to-market time.