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|The new non-traditional insurance solution is a parametric trigger typhoon risk cover|
Due to its tropical monsoon climate, Vietnam is on the path of many major storms, which regularly cause devastating losses. Businesses understand the importance of having solutions to protect their assets from unexpected disasters.
Whenever a risk such as a tropical storm catches them off guard without safety solutions in place, immense financial damage may follow due to the fact that the damaged property was not adequately protected or is below their actual deductibles.
This new non-traditional insurance solution is a parametric trigger typhoon risk cover, which protects fixed assets in operation or under construction, determined by the exact insured location (latitude, longitude) both onshore and offshore.
Unlike traditional insurance products that only cover a policyholder’s losses following physical damage, “One Storm” claims fast and uncomplicated payout to pre-defined triggers, even without physical damage incurred. Policy-holders can check their triggered pay-out in real time after a storm takes place at onestorm.munichre.com, data being identified and verified by an independent third party, Japanese Meteorological Agency (JMA).
This easily customisable product targets organisations, power plant operators, big corporations, industrial enterprises, and government agencies with a compensation limit of VND10-100 billion ($454,000-4.5 million) per insured location.
The advantage for clients holding this insurance product is that they are not only insured for fixed assets under five levels of storms, but also insured for non-material claims including loss of profit due to business interruptions, loss-prevention costs, overtime payments, coverage for deductibles of traditional property insurance policies, and costs of claim settlement for damage caused by storm.
In addition, the “One Storm” insurance product provides customers with the following benefits: financial support to minimise losses, no deductible is applied, cover for losses below the deductibles of other ordinary insurance claims, and simple and quick compensation procedures to finance investments and maintain business activities.
Nguyen Quang Hung, deputy CEO of Bao Viet Insurance, said at the launching ceremony: "Bao Viet Insurance's main policy in 2017 is to strengthen the cooperation with reputed international partners in order to provide products and services which are "the first in Vietnam" and bring many favourable options to customers.”
Achim Dosch, head of Section Engineering Construction CIP, Munich Re, added, “This product cooperation showcases a win-win situation that could serve as a role model. Bao Viet brought in their excellent market network, while Munich Re contributed research and product development expertise. This is another proof of our ambition to be at the forefront of product innovation to the benefit of our clients.”
The launch of “One Storm” is the result of close cooperation between the two partners, mobilising the strengths of each party to provide good customer experience and satisfaction with the product as well as the best service quality to customers.
The cooperation of the number-one non-life insurer in Vietnam, Bao Viet Insurance, with global reinsurer Munich Re promises a host of future solutions to protect customers against the risks of tropical storms.