Who is AXA Climate

AXA Climate is a specialized division within AXA Group focused on providing innovative insurance solutions tailored to climate-related risks. It aims to address the growing challenges posed by climate change through products like parametric insurance, which offer predictable financial protection against weather-related events such as hurricanes, floods, and droughts.

What is Parametric Insurance?

Parametric insurance is a novel approach to risk management where payouts are determined based on predefined, measurable parameters rather than actual losses incurred. Unlike traditional insurance, which reimburses actual damages, parametric insurance triggers payouts when specific conditions are met (ex. wind speeds reaching a certain threshold in a hurricane-prone area). This streamlined approach offers faster claims processing and certainty of payouts.

Parametric Insurance and Renewable Energy Projects

Traditional insurance struggles to fully cover perils like hail for large solar farms. Parametric insurance coverage can fill this gap and provide a rapid response after hail events, bolstering resilience against unpredictable weather conditions.

Parametric insurance can also be used to provide certainty on a project's revenue stream. Revenue protection parametric insurance for solar and wind farms provides financial security by guaranteeing payouts based on predefined revenue loss triggers, such as fluctuations in energy output due to adverse weather conditions.

As a non-profit impact insurer, Greenie Re will be able to provide increased capacity for solutions like this that have the potential to de-risk renewable energy investments and remove barriers to financing.