Weather Impact Insurance

Traditional insurance requires proof of loss or damage and a claims adjustment process that can take weeks or months. Parametric weather insurance pays out automatically based solely on verified weather data exceeding pre-defined thresholds, regardless of actual damage. This means you receive payment within 24-48 hours of the triggering event, with no need to document losses or damage. Additionally, you can use the funds however you choose—whether for direct repairs, covering lost revenue, or any other business need.

We source weather data from multiple independent providers including national meteorological services, commercial weather networks, and satellite data. Our oracle network requires consensus from at least 5 independent sources before confirming weather conditions, eliminating single points of failure or manipulation. The data is highly location-specific, using the nearest weather stations to your insured location, typically within a 5-10km radius. All weather data is permanently recorded on the blockchain, creating transparent, tamper-proof records that can be independently verified.

Yes, customization is one of the key advantages of our parametric weather insurance. You can select specific weather parameters (rainfall, temperature, wind speed, etc.), threshold values, and trigger conditions based on your unique business operations. We can even create complex multi-parameter policies that trigger under certain combinations of weather conditions. Our risk assessment team works with you to analyze historical weather data and your business sensitivity to develop optimized parameters that align with your specific risk profile.

This is known as basis risk—the possibility that you experience loss without a payout. We mitigate this by carefully calibrating your policy parameters based on historical weather data and your business operations. Additionally, we recommend a layered approach with multiple trigger levels providing partial payouts as conditions worsen. For example, you might receive a 30% payout at one rainfall threshold, 60% at a higher threshold, and 100% at the most severe level. This creates a more flexible policy that responds proportionally to varying degrees of adverse weather conditions.

Yes, our blockchain-based parametric weather insurance is available worldwide wherever reliable weather data exists—which covers most populated areas globally. The decentralized nature of our platform allows us to operate without geographical restrictions or the need for local insurance licenses, as the policy is technically a smart contract rather than a traditional insurance policy. Data availability and quality may vary slightly by location, with urban areas generally having more weather monitoring stations than remote rural locations. During the policy setup, we confirm data quality for your specific location before finalizing coverage.

Premium calculation involves analyzing decades of historical weather data for your specific location to determine the probability of your selected parameters being triggered. Key factors include: the weather parameter selected (rainfall, temperature, wind, etc.), the threshold values you choose, the coverage period (with seasonal variations in risk), your geographic location, coverage amount, and historical weather patterns. We use advanced probabilistic models and machine learning algorithms that incorporate climate change projections to price risk accurately while remaining competitive.

While traditional insurance policies are difficult to modify once issued, our blockchain platform allows for greater flexibility. You can request parameter adjustments mid-term, which will initiate a recalculation of your premium based on the remaining coverage period and the new parameters. This is particularly useful for seasonal businesses or when operations change unexpectedly. Note that some restrictions apply to prevent adverse selection—such as increasing coverage when adverse weather is imminent—and any changes must be made at least 10 days before potential trigger events to ensure fairness in pricing.

Yes, our risk models incorporate climate change projections from multiple scientific sources. We don't rely solely on historical data, which could underestimate future risk in a changing climate. Our algorithms include forward-looking climate models that account for changing weather patterns specific to your location. This approach ensures our pricing remains sustainable long-term while providing fair rates to policyholders. We typically update our climate models quarterly to incorporate the latest scientific data, ensuring our risk assessment remains current with emerging climate science.