Bessé and Hiscox incorporate parametric guarantee with reputational protection

Insurance broker Blessed has officially signed its new partnership with the UK specialist insurer Hiscox. Their joint work has led to the launch of a new and new guarantee dedicated specifically to the protection of the image and reputation of major brands. They are distinguished from other market offers by its innovative model based on the great trend of parametric insurance.

FACTS

• Bessé and Hiscox have therefore chosen to present their new common parametric insurance solution adapted to the protection of reputational risk. This offer, presented as new to the market, aims to help large companies cope with the risks of media crisis or bad Buzz on social networks.

• Named "E-reputation" guarantee, it is based on a concept presented as simple and unique, taking the form of a reputation score. This is developed for each company covered from semantic data about it, and from social networks.

• In order to give a relevant score to each company, Bessé and Hiscox first had to create a methodology based on the study of the media crises that particularly affected the agri-food sector over the last 11 years. Of the 166 brands analysed, 60% faced media alerts, and 14% experienced a major crisis, allowing both partners to model their insurance offerings.

• Once this score has been established, the "E-reputation" guarantee then allows the companies covered to monitor the evolution of the perception of their brand and to identify any deterioration of their image.

• The model thus operates on the basis of a preventive approach to risk, capable of anticipating major reputational crises. But the coverage as such only automatically activates when the risk is realized, unlocking financial resources to help the affected companies restore their reputation and image.

ISSUES

• Adapt a model: Proposing this type of coverage adapted to the reputational protection market required both partners to review the parametric model itself. Thus, most parametric insurances today rely on the aggregation of data opened or highlighted by trusted third parties in the market. But Bessé and Hiscox's proposal is based on the very expertise of insurers and their capacity acquired on the subject following their analysis.

• Protecting a full value Bessé and Hiscox underline the fact that reputation and branding represent a real value all the more fragile in the current context of domination of social networks, further reinforced by recent attacks on moderation tools.

PERSPECTIVE

• Bessé and Hiscox can boast today to offer a new adaptive mode of parametric insurance to cover a new market.

• Parametric insurance is, beyond this initiative alone, a major trend and development for the sector. In recent years, many actors have thus presented their own vision of parametric insurance, seeking in turn to better protect insured persons from the risks of hurricanes, the cyber risks, the drought, or Cloud Outages For example.

• These varying risks ultimately demonstrate the adaptability of this type of offer, whereby compensation is automatically triggered when a predefined parameter is reached, and not, as in the case of traditional models, on the basis of an expert's assessment of the real damage suffered.

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