RainSure: Parametric Insurance for Measurable Rain

(Image source: Vortex Weather Insurance.)

Vortex Weather Insurance (Overland Park, Kansas), a weather-focused InsurTech distributor providing parametric coverage for outdoor events and weather-related risks, has introduced RainSure, a new parametric rain insurance product that provides incremental payouts beginning at 0.01 inches of precipitation.

Andy Klaus, Lead Weather Index Producer, Vortex Weather Insurance.

Unlike policies that require rainfall to meet or exceed a fixed threshold, RainSure issues payments for any measurable rain, with escalating payouts up to thresholds of 0.25, 0.5, or 1 inch, depending on the coverage selected.

“RainSure helps protect your event from any amount of rain, even small amounts,” says Andy Klaus, lead weather index insurance producer at Vortex. “No more worrying about whether the rainfall that is creating losses will be enough to trigger a payout. If it’s just one one-hundredth of an inch, you get paid.”

Vortex states that RainSure is currently the only parametric escalator rain insurance product on the market. Designed for outdoor events, the product recognizes that increasing rainfall often leads to greater financial losses. Policyholders may select from three levels of coverage that provide progressively larger payouts as rainfall amounts increase.

“RainSure offers our clients a new level of protection,” Klaus says. “In covering outdoor events, it’s known that the more rain that falls, the higher the losses. With RainSure, you can get coverage that recognizes that fact and pays out more as the amount of rain goes up.”

Rainfall measurements are verified by WeatherWorks, an independent third party with more than 20 years of experience in localized precipitation tracking. Any amount above a “trace” level—defined as 0.01 inches—triggers a payout.

As with other Vortex parametric weather insurance products, RainSure does not require documentation of damage or loss. If precipitation levels meet the insured thresholds, a payment is issued directly to the policyholder.

Money Quickly into Policyholder Hands

“One of the best things about parametric weather insurance is that it doesn’t take long to get money into the policyholder’s hands, and RainSure is no exception,” Klaus says. “Because the policy doesn’t require proof of loss to pay out, it’s a really simple process. Clients can ‘RainSure’ their outdoor events and receive a guaranteed claim for any measurable amount of rain.”