Keep reading for the simple break-down of how parametric rain insurance works for your golf tournament.
Rain insurance is parametric.
When we use the term “parametric,” we mean that specific parameters are used to analyze data and determine outcomes. In other words, you need facts to fill out the figures.
A rain insurance policy on your golf tournament will trigger if recorded rainfall meets or exceeds the threshold listed in the policy during the coverage period.
What are the benefits of playing golf? Vortex’s Eric Anderson answers.
The parameters to measure this include:
- Rainfall measured by a 3rd party—in our case the National Oceanic and Atmospheric Administration
- Your location, as measured in a 2.5×2.5 mile grid square surrounding the event
- Your chosen threshold for rainfall, which can be as small as 1/10 (.1) inch
- Your desired coverage period—which could be days long to a few hours long
Proof of loss/event cancellation is not necessary.
The policy triggers if your rainfall threshold is met. That’s it. You don’t have to prove you lost revenue, or that the event was canceled. If the policy triggers, payment is made even if the event continues.
The claim works quickly and simply, with payment typically mailed in less than two weeks.
Some people also opt for rain insurance for rain dates/makeup dates. With the flexibility Vortex Weather Insurance offers, you can do partial insurance for the rain date. This works to many event organizers’ advantage, as rain dates are usually less well-attended.
How parametric rain insurance works for pricing.
Vortex uses the National Stage IV gridded data as a key component to assist in providing quotes, and determine claims.
The data is also used to determine the likelihood of rainfall during a particular period, which is part of calculating the rates.The NOAA records weather data in radar grids of 2.5 miles by 2.5 miles.
When we have your event address, we will apply the grid to that location and look at historical data. Using an analysis of that data we come up with pricing options.
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Once you understand how parametric weather insurance works, you can better realize the value of what we can do for your golf tournament. For more information check out our FAQs.