AIR Parametric launches Milkshake
Boston-based AIR Parametric , in partnership with Guy Carpenter and Liberty Mutual Reinsurance, has launched Milkshake™, a parametric insurance product aimed at protecting US dairy producers from heat stress, which impacts livestock productivity and reduces milk output.
Milkshake™ was developed in consultation with dairy industry experts and agents. It uses AIR Parametric’s weather data and machine learning to identify location-specific weather triggers. Customers can choose from various coverage limits and events, with a streamlined quoting and binding process that eliminates traditional claims adjustments.
AIR Parametric’s solutions offer financial protection from extreme weather events like heat spells, cold snaps, and excess rainfall, which, while not physically damaging, can severely affect business operations.
“We are very proud of our first generation Milkshake™ product, and we will be adding more distribution partners across the US and in other livestock regions around the globe. Parametric products are becoming more applicable to the broad commercial marketplace and can help customers of all industries address the economic impacts of weather. Our advanced data platform allows us to create solutions for any business globally that is negatively impacted by an extreme weather event. We are currently working with agents and customers in an array of business segments to leverage these capabilities to build new programs. The broader insurance community is just beginning to understand the power of the parametric insurance solution – there are so many ways to use it to solve problems our policyholders are experiencing.” – James Luce, CEO and Founder of AIR Parametric.
“Guy Carpenter acted as the sole placing broker for AIR Parametric helping secure A rated capacity in a challenging market cycle. AIR Parametric’s new dairy heat stress product is designed to address a protection gap in the agricultural industry, protecting farming businesses from extreme temperature fluctuations which impact revenue.” – Sam Knee-Robinson, Guy Carpenter’s Innovation & Emerging Risk Practice.
“We are really pleased to be involved in bringing this unique solution to US dairy producers. There is no alternative cover for the implications of this weather trend, which as a result of climate change, is becoming increasingly challenging. This solution closes the protection gap, providing essential, timely financial relief in the event of extreme weather conditions.” – Jean-Christophe Garaix, Head of Agriculture and Parametrics, LM Re.