/

/

/

Payouts triggered by measurements everyone trusts.

Parametric insurance pays when a measured index crosses a threshold: rainfall too low, wind too strong, a river too high. It pays fast only if every party trusts the measurement. Stations built to the WMO guide, signed at the source and audited, give insurers, reinsurers and policyholders the same number.

Industry

Insurance and finance

Measurements

4

Sources cited

5

1. Insurance and finance · Parametric insurance triggers

   Money moves on a number

   Parametric insurance pays when a measured index crosses a threshold, so it can pay in days rather than months. That works only if insurers, reinsurers and policyholders all trust the measurement. Supervisors look closely at basis risk, transparency and fair treatment.

2. What is measured

   The index, measured

   Reference rain gauges, anemometers and river gauges measure the quantities the policy pays on, sited to represent the insured area and calibrated to traceable references. Tamper sensors in each enclosure record any opening. Every instrument keeps its calibration and position with the site record.

   Instruments

   Reference rain gauges · Anemometers · River gauges · Tamper sensors

3. The base node

   Signed at the source

   The node signs every reading at the source, computes the index exactly as the policy defines it, detects tampering from enclosure sensors and data patterns, and keeps a full archive so any payout can be reproduced by any party. Every value is signed at the node before it leaves.

4. Radio and links

   Reporting through the event

   Stations report over cellular where coverage exists, with a satellite path that keeps data flowing through the storms and floods the policy covers. All parties read the same signed index through the same interface. When one path fails, the other carries the data.

   Links

   Public cellular · Satellite

5. How it works

   From a failed season to a payout

   The rainy season fails across an insured district. The rainfall index accumulates below the trigger by the policy’s end date; the signed calculation is released to insurer, reinsurer and farmer groups, and payouts reach farmers within days, before they must sell assets.

6. From order to operation · Order

   Scope the index with the insurer

   The scope reads the policy design, insured areas, the index definition and the basis risk analysis. Nexus Observatory Inc. returns the station plan, index calculation, audit design and a price per station and per year. The scope is agreed before any site work begins.

   Plan a deployment

7. From order to operation · Survey

   Survey for representativeness

   Crews survey candidate sites for how well they represent the insured area, exposure to the WMO siting classes, security, power and backhaul. Findings feed the basis risk analysis. Findings shape the kit for each site before anything is built. Every finding is kept with the site record for the crews who follow.

8. From order to operation · Permits

   Land and agreements

   Land agreements protect each site, and the insurer, reinsurer and policyholder representatives agree the data rules and dispute process. Every agreement is kept with the programme record. No crew goes to site before its approvals are in place. Approvals are tracked site by site, so nothing waits unseen.

9. From order to operation · Build

   Build and calibrate

   Sensors are calibrated against traceable references, enclosures fitted with tamper sensors, nodes enrolled with their identities and signing keys, and stations run together before shipping. Nothing ships until the whole kit has passed its tests together. Test results travel with the kit to the site.

   Open the Station Builder

10. From order to operation · Install

    Install and secure

    Crews install stations to the siting classes, secure enclosures and fences, connect power and both backhaul paths, and record every part with photographs witnessed by the parties where required. Crews follow the site safety plan throughout the work. The site record is updated before the crew leaves.

11. From order to operation · Commission

    Commission and witness

    Each node proves its identity. Readings are compared with a travelling reference and nearby official stations, the index calculation is tested against history, and parties witness the results. Acceptance is recorded with the owner before handover. Results are signed and kept with the site record.

12. From order to operation · Operate

    Pay on the index

    All parties see the index as it accumulates. When it crosses the trigger, the calculation and signed readings are released together, and payouts move in days, not months. Every alert and action is kept on the record. Reports for owners and funders come from the same record.

13. From order to operation · Maintain

    Audit and recalibrate

    Stations are recalibrated on the agreed plan, audits check data integrity and availability, software is updated in rings, and every change is recorded so any past index can be reproduced. Maintenance history stays with each site for its whole life.

    Book field services

14. Data products

    For insurers, policyholders and supervisors

    Insurers, reinsurers and policyholders receive signed index values; claims and finance teams receive trigger notifications; supervisors and auditors receive audit trails; product designers receive basis risk reviews, each tied to station and period. Every product can be traced back to its readings.

    See the data products

15. Evidence

    Trusted by every party

    Measurements follow the WMO instrument and hydrological guides, data integrity follows the information security standard, and the programme answers supervisors’ concerns on index-based insurance and fair claims handling. Every reading is signed and archived. The record is kept for as long as the duty lasts.

    Drawn against

    Issues Paper on Index-based Insurances · Insurance Core Principles · WMO-No. 8 · WMO-No. 168 · ISO/IEC 27001

16. What you get

    Independent measurement feeds for parametric triggers

    Calibrated, tamper-evident measurement feeds that a risk carrier may name as the index source. The group writes no insurance and makes no payout decision. Delivered as data licence, for insurers, reinsurers, brokers, risk pools. Scale: Portfolio scale. Service levels are written as numbers you can measure on your own dashboard.

    Talk to sales

17. Next step

    Plan parametric insurance triggers with us

    Tell us the site, the measurements and the rules it answers to. We reply with a survey proposal, a design and a scope for parametric insurance triggers. An engineer replies with a survey proposal and a scope, and the plan grows from one site to the network you need, at your pace.

    Plan a deploymentOpen the Station BuilderOpen the Studio

01The place and its hazards

Where it runs, and what can go wrong.

Operating contextIndex-based insurance is reviewed by insurance supervisors for basis risk, transparency and consumer protection, and insurers must treat policyholders fairly and settle claims promptly under the core principles of supervision. Index measurements must be accurate, available and protected against tampering, because money moves on them.

Hazards

• Basis risk when the station is far from the loss
• Station gaps during the very event insured
• Tampering or disputes over readings
• Indices that cannot be reproduced afterwards
• Payouts delayed by manual data checks

02What must be measured

What, where, how often, and under which rules.

Each measurement names where it is taken, how often, and the public standard or regulation behind it. Numbers in the sources column open the cited source below.

03The observation stack

From one base unit to a network.

The same blocks at every scale: instruments and a base node, a site with its radio, a fleet run as one, and a network federated on the open protocol.

1. 01

   Base unit

   A station: reference weather or river sensors on a sensor hub with a node that signs every reading.

   Build a station →
2. 02

   Site

   A site: the station in a secured enclosure with solar power and two backhaul paths.

   Plan a site →
3. 03

   Fleet

   Every station of a programme, with one index calculation and audit trail.

   Managed offers →
4. 04

   Network

   Insurers, reinsurers, policyholders and supervisors read the same signed index through open standards.

   The open protocol →

• 01Automatic weather station (WMO class)
• 02Compact weather station
• 03Water level gauge
• 04Sensor and instrument gateway
• 05Micro node (Nano)
• 06Cellular modem/router
• 07LEO flat-panel terminal
• 08Solar array
• 09Pole

Radio and links

Public cellular

Stations report over cellular where coverage exists.

Radio and links

Satellite

A satellite path keeps data flowing through the storms and floods the policy covers.

Edge computeThe node signs every reading at the source, computes the index as the policy defines it, detects tampering from enclosure sensors and data patterns, and keeps a full archive so any payout can be reproduced.

PowerSolar with batteries sized for the worst season, so the station reports through the event it insures.

04How it works

From the instrument to the product.

One observation’s path, tier by tier, with the interface on every link and a bill of materials below; then how the one node grows to a site, a fleet and federated networks.

05From order to operation

Every step, from the first call to a running site.

The same crew and the same record carry the work from scope to maintenance.

1. 01 Order

   Scope the index with the insurer

   The scope reads the policy design, insured areas, the index definition and the basis risk analysis. Nexus Observatory Inc. returns the station plan, index calculation, audit design and a price per station and per year. The scope is agreed before any site work begins. 2

2. 02 Survey

   Survey for representativeness

   Crews survey candidate sites for how well they represent the insured area, exposure to the WMO siting classes, security, power and backhaul. Findings feed the basis risk analysis. Findings shape the kit for each site before anything is built. Every finding is kept with the site record for the crews who follow. 1

3. 03 Permits

   Land and agreements

   Land agreements protect each site, and the insurer, reinsurer and policyholder representatives agree the data rules and dispute process. Every agreement is kept with the programme record. No crew goes to site before its approvals are in place. Approvals are tracked site by site, so nothing waits unseen.

4. 04 Build

   Build and calibrate

   Sensors are calibrated against traceable references, enclosures fitted with tamper sensors, nodes enrolled with their identities and signing keys, and stations run together before shipping. Nothing ships until the whole kit has passed its tests together. Test results travel with the kit to the site. 4

5. 05 Install

   Install and secure

   Crews install stations to the siting classes, secure enclosures and fences, connect power and both backhaul paths, and record every part with photographs witnessed by the parties where required. Crews follow the site safety plan throughout the work. The site record is updated before the crew leaves.

6. 06 Commission

   Commission and witness

   Each node proves its identity. Readings are compared with a travelling reference and nearby official stations, the index calculation is tested against history, and parties witness the results. Acceptance is recorded with the owner before handover. Results are signed and kept with the site record. 5

7. 07 Operate

   Pay on the index

   All parties see the index as it accumulates. When it crosses the trigger, the calculation and signed readings are released together, and payouts move in days, not months. Every alert and action is kept on the record. Reports for owners and funders come from the same record. 52

8. 08 Maintain

   Audit and recalibrate

   Stations are recalibrated on the agreed plan, audits check data integrity and availability, software is updated in rings, and every change is recorded so any past index can be reproduced. Maintenance history stays with each site for its whole life. 4

06Data products and integration

What it delivers, to whom, and into which systems.

Data products

• Signed index valuesInsurers, reinsurers and policyholders
• Trigger notificationsClaims and finance teams
• Audit trailsSupervisors and auditors
• Basis risk reviewsProduct designers

Integration

• Policy administrationTriggers reach claims systems with the signed calculation.
• ReinsurersIndex data are shared under the treaty.
• SupervisorsAudit trails are available on request.

Exchanged through OGC SensorThings API, JSON Web Signature, WMO WIS 2.0.

07Questions buyers ask

Before you scope it.

Can readings be disputed?

Signed readings and archives let any party reproduce the index.

What if the station fails in the storm?

Solar, batteries and satellite carry it through.

How is basis risk reduced?

By siting stations to represent the insured area.

How fast is payout?

As fast as the policy allows once the trigger is reached.

08Resources

The sources behind this page.

Public standards, regulations and guidance, cited where they apply. Each applies only where its jurisdiction or scope does.

1. 1WMO-No. 8: Guide to Instruments and Methods of ObservationWorld Meteorological Organization
2. 2Issues Paper on Index-based Insurances, particularly in Inclusive Insurance MarketsInternational Association of Insurance Supervisors · 2018
3. 3WMO-No. 168: Guide to Hydrological PracticesWorld Meteorological Organization
4. 4ISO/IEC 27001: Information security management systemsInternational Organization for Standardization
5. 5Insurance Core PrinciplesInternational Association of Insurance Supervisors

09Related

Use cases and solutions.

10Insurance and finance: specialized fields

Other fields of this industry.

Bring us the site.

Plan a deployment, configure a station, model it in the Studio or talk to sales. The form names who receives your details.