Tower Insurance has announced a collaboration with CelsiusPro Group, a global insurtech, to enhance its Cyclone Response Cover's IT infrastructure.
This parametric insurance product offers a swift cash payout to policyholders affected by high wind-speed cyclone events. The new initiative will leverage CelsiusPro’s White Label Platform (WLP) to create a tailored distribution platform, introducing features like an online premium calculator and mobile support.
Statistics indicate that in many Pacific countries, insurance coverage remains below 10%. This collaboration aims to enhance insurance accessibility for severe weather risks, ultimately reducing the recovery burden on local communities. The partnership also marks a significant step in insurance innovation in the Pacific, complementing Tower's existing digital initiatives, including the My Tower platform and digital kiosks.
Tower showcased its parametric insurance product at the International Conference for Inclusive Insurance 2023 in Ghana, in association with the United Nations Capital Development Fund (UNCDF). Initially piloted in Fiji for the 2022/2023 cyclone season, the Cyclone Response Cover is now available to all Fijians. Plans for the upcoming 2023/2024 season include a pilot in Tonga and potential expansion into other territories where Tower operates.
“Communities in the Pacific are seeing how innovation can change the way they interact with their insurance. This partnership with the CelsiusPro Group demonstrates Tower’s commitment to providing innovative products to accelerate viable and sustainable adoption of parametric insurance in the region,” Tower chief underwriting officer Ron Mudaliar said.
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