The policy enables travellers to cancel their trip and either rebook at a later date or receive a full refund on bookings if a weather forecast shows torrential rain within days of the planned departure date.
The parametric product employs real-time weather data to simplify the claims process, meaning that a claim can be electronically verified. In the event of bad weather, customers will be contacted directly via SMS (text message), with compensation delivered electronically in the event that they choose to cancel their trip.
The pricing model for weather protection also incorporates live weather data, and is adjusted in real time, factoring in the policyholder’s specific location, and the time of year, improving transparency for customers and ensuring a fair price for policies.
“Travellers aren’t looking for complicated insurance. They want simple, clear covers that protect them from relevant risks and make them feel safe – like the guarantee their vacation won’t be ruined by bad weather,” said Pattern’s Head of Underwriting Joyce Segall.
“We are thrilled Pattern is launching this innovative new product for the U.S. travel market. We are helping travellers protect their eagerly anticipated trips and helping travel distributors who integrate weather protection into their buying journey to enjoy higher conversion rates, increased revenue, and happier customers,” he added.
The policy is available through Pattern’s digital platform, enabling travel distributors to integrate the policy into their offering easily.
Pattern also recently partnered with Greek cruise line Variety Cruises to offer a range of travel insurance products on their website.