According to CIR Magazine, the change will protect businesses against events that occur outside of specified meteorological parameters like temperature, wind speed, or precipitation.

This creative system, which makes use of sophisticated algorithms, ensures quick and effective claims settlement by automatically initiating rewards when weather occurrences depart from predetermined parameters.

The parametric cover for Chaucer is underwritten by a US-based specialized team.

The team, led by seasoned weather risk management expert Dr. Ed Byrns, hopes to offer strong underwriting capabilities for the new endeavor.

"I'm excited to be working with Chaucer at this crucial time for the weather insurance market and creating new products with clients at the heart of it," he said in response to the news. Climate change has hastened the expansion of weather-related insurance, and as the hazards associated with erratic weather patterns increase in frequency, so does the need for insurance products.

"We are delighted to have Ed Byrns working with us to lead our entry into the growing weather insurance market," Chaucer Chief Strategy Officer Duncan Gemmel continued. He will assist in providing our clients with the answers they require and contributes a multitude of knowledge and experience.

In 2022, Chaucer partnered with parametric insurance provider K2 Parametric to provide hurricane and earthquake damage insurance specifically designed for mid-sized businesses and US communities.