Swiss Re Corporate Solutions expands its Innovative Risk Solutions offering by launching FLOW, the parametric water-level insurance. The new index-based product is designed to protect companies in Europe from the financial impact of high or low river water levels, such as lost revenue due to business interruption or increased costs due risk mitigation measures.


Swiss Re Corporate Solutions’ experts structure an index formula which references to measured water levels at defined river gauges. The customized index tracks the client’s water level exposure related to revenues and costs. Each contract is tailor-made to the individual exposure of the client.


Unlike traditional insurance covers, which often require loss investigations and adjudication, FLOW provides pay-out of fixed amounts based on a defined index, for example each day the index remains below or above the defined index threshold value.


"The very dry and warm summer of 2018 left the water levels of most rivers in Europe at record lows," explains Thomas Keist, Head Marketing Innovative Risk Solutions EMEA. "Decreased production volume and increased transportation costs were the consequence. Since it is at the heart of our business to insure companies impacted by the effects of natural perils such as drought and heat, we developed FLOW to help them cope with risks like the loss of revenue due to business interruption from high or low water levels."


Other factors that determine the pay-out amounts are the increased costs of operation, additional expenses to mitigate the situation as well as expenses not covered by traditional insurance policies.


FLOW is available in the European markets of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, the Nordics, Portugal, Spain, Switzerland and the UK.