Developed in collaboration with Guy Carpenter and Liberty Mutual Reinsurance, Milkshake™ offers a tailored solution to mitigate the risks associated with extreme weather events that can negatively affect livestock productivity and milk production.
Leveraging AIR Parametric’s advanced weather data and machine learning capabilities, Milkshake™ identifies location-specific weather triggers that can lead to heat stress. This allows dairy producers to select coverage limits and events that align with their specific needs. The streamlined quoting and binding process eliminates the complexities of traditional claims adjustments, providing a more efficient and transparent experience.
AIR Parametric’s innovative solutions offer financial protection against a range of extreme weather events, including heat spells, cold snaps, and excess rainfall. While these events may not cause physical damage, they can have a devastating impact on business operations. Milkshake™ provides dairy producers with a reliable way to safeguard their livelihoods against the unpredictable forces of nature.
In a statement James Luce, CEO and Founder of AIR Parametric, said: “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.”
“Guy Carpenter acted as the sole placing broker for AIR Parametric helping secure A rated capacity in a challenging market cycle” said Sam Knee-Robinson, Guy Carpenter’s Innovation & Emerging Risk Practice. “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.”
Jean-Christophe Garaix, Head of Agriculture and Parametrics, LM Re added: “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.”
