Together, they plan to integrate satellite observations into parametric insurance triggers, extending Skyline’s product portfolio into new areas of business.
The collaboration between Skyline Partners and Spire Global is designed to utilise satellite data to develop innovative parametric insurance products. By venturing beyond the realms of weather and natural catastrophe insurance, they intend to create a more diverse range of offerings.
Skyline Partners operates as an underwriting agency, supported by an international panel of top-tier insurance and reinsurance firms, with a primary focus on parametric insurance and risk transfer products. On the other hand, Spire Global possesses a fully deployed satellite constellation, collecting real-time data about Earth using radio frequency technology. Their data acquisition spans detailed information on global shipping activity, real-time weather data, flight tracking intelligence, and other environmental variables such as sea ice and soil moisture.
In collaboration, Skyline Partners and Spire Global plan to develop risk transfer tools designed to close the coverage gap in the marine, aviation, and agricultural sectors. They aim to create parametric insurance products based on live insights into asset movements within these sectors. Additionally, they plan to utilise historical and current weather data to enhance Skyline’s parametric insurance product offerings for property insurers.
The amalgamation of computational power, novel data sources, and new risk transfer structures will break traditional insurance model constraints, allowing Skyline and Spire to create and manage innovative coverages that redefine insurability.
Skyline Partners co-founder and executive director Gethin Jones said, “The combination of computational power, enormous new sources of data, and new risk transfer structures unconstrained by the traditional insurance model allows us to create and administer powerful new cover which breaks the boundaries of insurability.” He also mentioned, “This new partnership with Spire will fuel the development of a range of innovative products which are currently difficult or impossible to insure adequately using conventional approaches.”
Additionally, Mike Eilts, general manager of Weather and Earth Intelligence at Spire, added, “Our mission is to deliver data and analytics which can only be collected from space, to protect our environment and our communities, transform global logistics, contribute to economic stability, and put moonshot goals within reach.” He emphasised, “There are significant potential applications for our data in the insurance sector that align with our mission, and we’re excited to bring those applications to fruition through this new relationship with Skyline Partners for parametric.”
Source: Fintech Global
