This collaboration aims to enable Kettle to provide location-specific, wind speed-based parametric hurricane reinsurance services in the United States.
Kettle has been previously recognised for its wildfire-focused solutions, has quickly adapted by integrating Reask’s hurricane hazard data. This integration has allowed them to innovate and gain market access swiftly.
Meanwhile, Reask provides high-resolution weather risk analytics and forecasting, offering insights into the severity and frequency of extreme weather events anywhere on Earth. By applying AI across various climate data sources, Reask develops proprietary weather modeling algorithms that learn climate physics, providing dynamic forward-looking representations of atmospheric risk.
This approach offers critical insights and intelligence to insurers and asset managers who require more accurate weather catastrophe forecasting, replacing outdated methods relying on static historical statistics.
Reask is also known for delivering proven global tropical cyclone models to industry leaders such as Swiss Re, AXA, Descartes (a parametric insurer), as well as ILS firms Securis and Twelve Capital, has joined forces with Kettle. The latter initially focused on enhancing the accuracy of pricing, underwriting, and reinsuring wildfire risks in the United States.
New ClimateTech offerings from the Reask/Kettle partnership
The new partnership facilitates Kettle’s expansion into climate-related offerings, incorporating parametric hurricane reinsurance by leveraging Reask’s market-leading hurricane modeling product, Metryc. The data provided by Reask will enable Kettle to more accurately calculate premiums, ensuring swift and efficient settlement of claims within 24 hours of an event.
David Schmid, Head of Parametric Products at Reask, expressed his enthusiasm about the collaboration, stating, “This collaboration marks the beginning of a new era in which Reask will significantly contribute to advancing from first-generation distance-based parametric covers to more accurate and cost-effective intensity-based parametric products.”
Brian Espie, Chief Underwriting Officer at Kettle, also commented on the partnership, emphasising the shared vision between the two companies. Espie said, “Kettle and Reask both recognise that AI and machine learning empower us to better predict risks in a changing climate. This seamless partnership allows Kettle to accelerate our product innovation and offer tailored coverage solutions to customers in areas most affected by climate-related risks.”
David Schmid added, “Our partnership with Kettle is a win-win situation. We supported them in significantly reducing their time-to-market, while they facilitated our expansion in the US market.”