Tower, an insurer serving New Zealand and Pacific communities, has partnered with insurtech firm CelsiusPro to launch a cutting-edge IT platform aimed at streamlining parametric insurance distribution.
The first product to roll out under this platform is Tower’s Cyclone Response Cover, designed specifically for customers in Fiji and Tonga.
This innovative parametric insurance product provides swift financial relief to policyholders when high-wind tropical cyclones affect their homes, businesses, or other insured properties. Unlike traditional insurance, parametric insurance offers immediate cash payouts once predefined intensity is detected.
The newly launched platform leverages CelsiusPro’s award-winning White Label technology, integrating real-time data from the Joint Typhoon Warning Center (JTWC). This data drives the policy’s trigger mechanisms, ensuring dependable coverage for clients.
A range of user-centric features enhances the overall insurance experience for Tower customers, a news release said. These include self-registration with multi-factor authentication, an online premium calculator, and automated policy generation. Clients can also monitor real-time weather data and settlement processes through the platform. This functionality is particularly beneficial for rural communities, where traditional insurance claim procedures can be cumbersome.
Mark Rueegg, CEO of CelsiusPro, emphasised the value of the collaboration.
“We are pleased to partner with Tower and support their commitment to helping clients recover faster from climate events,” he said. “Our proprietary technology enables Tower to provide an intuitive and seamless user experience, making it easier for clients to purchase parametric insurance.”
Ron Mudaliar, Tower’s chief underwriting officer, stressed the insurer’s dedication to increasing climate resilience across the Pacific. “Tower’s purpose is to protect and enhance the future for the good of our customers and communities. Parametric insurance is one tool we are using to help increase insurance awareness and uptake in the Pacific. We are committed to helping the economic and personal resilience of Pacific communities using parametric insurance, and are thrilled to partner with CelsiusPro on this journey,” he said.
Tower’s Cyclone Response Cover is especially relevant for micro and small enterprises, independent farmers, mariners, rural communities, and retail clients.
Tower and CelsiusPro plan to extend the platform to Samoa by the end of September 2024. Additionally, Tower is preparing to introduce a parametric rainfall insurance product for Fiji customers in the near future.
CelsiusPro Group is focused on helping organisations manage climate and natural catastrophe risks. The company integrates climate data and risk modelling to distribute and manage parametric insurance products. CelsiusPro’s subsidiary, Global Parametrics, provides financial instruments to support risk transfer.
Tower is an insurer in New Zealand and the Pacific with a 155-year history. It focuses on customer-centric, digital-first solutions that address modern insurance needs, including coverage for houses, cars, contents, and businesses. Tower continues to invest in innovation to meet the evolving demands of its clients.
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