Swiss Re rainX – straightforward protection in case of heavy or lack of rain

2  Swiss Re Swiss Re rainX

Drought and flood increasingly affect communities and agriculture across  the globe. Helping people recover after such events is important to keep lives, livelihoods and the economy going.  In areas where such events are a recurring phenomenon, taxpayers are often obliged to finance the recovery themselves – reducing individual purchasing power and considerably slowing down the economy.  At Swiss Re, we can help you avoid  these undesirable effects. Our rainX tool delivers straightforward and effective protection for your region. The cover we offer is affordable, easy to understand and pays out quickly in times of need.

How index insurance worksIndex insurance – often also called parametric insurance – differs from classical indemnity insurance, where the insured needs to prove the extent of his loss. Index insurance relies  on external, verifiable and quantifiable data or parameters.  The data characterises an event and determines whether  and to which extent there is an insurance payout.

The threshold value triggering a payment is calculated based on historic values and forward looking modelling. Conditions are defined beforehand, in a way that closely mirrors the actual payout needs. Swiss Re or a third party agency can organise settlements. What’s more, there is no need for any proof of loss or paperwork. 

Key advantages of index insurance: Ensures rapid payouts after triggering events  

(generally within 2 to 6 weeks), as no assessment  of actual losses is needed

Guarantees full discretion on the use of insurance payouts (emergency response, infrastructure, etc)

Represents a transparent product, accessible to all stakeholders concerned

Enables customisation and scalability of coverage  and payout patterns

You define the area of interest

You define We propose You decide We pay out

You define the amount of protection you need

We quantify the risk using satellite rainfall data

We propose an appropriate solution using Swiss Re rainX

Index insurance is straightforward with Swiss Re rainX

You decide whether we should further refine our proposal

You decide whether you want to enter into an agreement with us based on our proposal

We pay out in case an event exceeds the agreed index

1 2 3 4

You have full discretion on how to use the payout

Swiss Re Swiss Re rainX  3

Where Swiss Re rainX comes inAt Swiss Re, we have developed rainX, a tool that delivers straightforward and effective insurance cover against heavy  or lack of rain. We use daily rainfall data with high spatial resolution (ranging from 5 to 25 km) provided by a number  of international, independent and publicly accessible satellite data sources1. 

With Swiss Re rainX, we can offer you attractive index-based solutions: Customised coverage for heavy rain and subsequent 

flooding events, for which traditional insurance solutions  are not available, including:‒ Heavy rainfall events of short duration (also during 

tropical cyclones)‒ Unusually heavy monsoons

Customised coverage for lack of rain, or so-called meteorological droughts, causing damage during  the sowing and early growth periods of crops in particular.

Index insurance is straightforward with Swiss Re rainXRainfall insurance has already proven its worth in many  regions of the world, including in the Caribbean, India,  Kenya and China. With Swiss Re rainX, insurance becomes  an even more cost-effective solution for anticipating the financial impact of a severe climate event at national,  regional or local governmental level. 

Contact us for more informationwww.swissre.com/global_partnerships  

You define the area of interest

You define We propose You decide We pay out

You define the amount of protection you need

We quantify the risk using satellite rainfall data

We propose an appropriate solution using Swiss Re rainX

Index insurance is straightforward with Swiss Re rainX

You decide whether we should further refine our proposal

You decide whether you want to enter into an agreement with us based on our proposal

We pay out in case an event exceeds the agreed index

1 2 3 4

You have full discretion on how to use the payout

1 Swiss Re rainX currently works with the following data sets:-  CHIRPS by Climate Hazards Group , http://chg.geog.ucsb.edu/data/chirps/ -  CMORPH by NASA, http://www.cpc.noaa.gov/products/janowiak/cmorph_description.html -  African Rainfall Estimation (RFE) by NOAA, http://www.cpc.ncep.noaa.gov/products/fews/AFR_CLIM/AMS_ARC2a.pdf -  TRMM by NASA, http://trmm.gsfc.nasa.gov/ 

© 2016 Swiss Re. All rights reserved.

Title:Swiss Re rainX – straightforward protection  in case of heavy or lack of rain

Authors:Lea Müller, Gerry Lemcke

Editing and realisation:Bernd Wilke

Proofreading:Orla Harte

Infographics:Annie Wu

Graphic design, graphs and production:Swiss Re Corporate Real Estate & Logistics/Media Production, Zürich

Photographs:Getty Images, Swiss Re

08/16, 1507160_16_en

Swiss Reinsurance Company Ltd Mythenquai 50/60 P.O. Box 8022 Zurich Switzerland

Telephone +41 43 285 2121 Fax +41 43 285 2999 www.swissre.com