Reinsurance News
Parametric insurance news
Parametric insurance and parametric reinsurance are growth areas for the industry. We cover news on many forms of parametric risk transfer to provides our readers with insights into developments in the re/insurance market related to parametric triggers.
Parametric insurance utilises catastrophe event, weather, or other data parameters to define payout structures and triggers for contracts. It is considered a fast, pre-defined payout system, with payouts coming due when a specific, objective event occurs and a pre-defined parameter is reached, rather than assessing actual physical loss like traditional indemnity insurance.
This archive features our news on the use of parametric triggers to structure insurance or reinsurance protection, as well as discussion on the benefits of parametric triggers as transparent, fast-paying trigger mechanisms for providing parametric insurance and reinsurance coverage.
The Demex Group raises $10.25m for its weather and climate reinsurance solution
6th September 2024
The Demex Group, a technology-enabled managing general agent (MGA), has raised $10.25 million through a Series A and previously closed SAFE funding round for its breakthrough weather- and climate-related reinsurance solution. Demex offers an innovative parametric reinsurance solution that addresses the growing financial risks associated with severe convective storms - including ... Read the full article
Poll suggests parametrics rank as most in-demand alternative risk solution
29th August 2024
As alternative risk solutions gain traction, parametric insurance is expected to be the most in-demand offering, according to a recent poll by Reinsurance News. The poll shows that parametrics lead significantly with 40% of the vote, far surpassing structured solutions at 25%, captives at 21%, and complex risk offerings at 14%. The ... Read the full article
Growing demand for parametric insurance in 2024: AM Best
20th August 2024
Record cat bond issuance and large spreads indicate a strong demand for reinsurance capacity, leading to continued interest in parametric-triggered reinsurance and insurance-linked securities (ILS) in the first half of 2024, according to AM Best’s latest report. In the first half of 2024, six natural catastrophe bonds with parametric triggers ... Read the full article
Poll reveals lack of data and education hinder parametric insurance adoption
15th August 2024
According to a recent poll by Reinsurance News, the main obstacles to the global adoption of parametric insurance are the lack of available data and models, along with inadequate education about these solutions. To clarify, parametric insurance is a type of coverage that guarantees payment to a policyholder based on the ... Read the full article
Sprout, Britam, and LM Re launch parametric insurance for Kenyan coffee farmers
13th August 2024
Liberty Mutual Reinsurance (LM Re), a division of Liberty Mutual Insurance Group, has announced a new collaboration with Insurtech firm Sprout, Inc. and Britam, a financial services company serving as the local underwriter. Together, they are introducing a parametric insurance product aimed at safeguarding Kenyan coffee farmers from financial losses caused ... Read the full article
Kairos partners with CHAZ to enhance Parametric and Trade Credit Insurance
13th August 2024
Kairos Risk Solutions, a Singapore-based boutique insurance solutions consultancy, has signed an agreement with Thailand’s CHAZ Insurance Brokers to offer expertise in Parametric and Trade Credit Insurance. Kairos will assist CHAZ with marketing and product development for these innovative lines of business. Founded in 1966, CHAZ Insurance Brokers is one of Thailand’s ... Read the full article
CINICO launches new home insurance policy with Parametric Coverage
8th August 2024
The Cayman Islands National Insurance Company (CINICO) has announced it is now offering home insurance policy with Parametric Coverage. This parametric solution was created to pay out pre-agreed amounts automatically to cover incidental expenses, without the need to submit a claim in the event of a hurricane of a Category 3 ... Read the full article
AXA launches new parametric product for outdoor practitioners working in the Hong Kong summer
5th August 2024
AXA Hong Kong and Macau has announced the launch of the market-first "Heatwave Parametric Insurance", a new offer created to provide enhanced protection for outdoor practitioners amid escalating climate risks in the summer in Hong Kong. According to the Hong Kong Observatory the annual mean temperature in Hong Kong has exhibited ... Read the full article
World Bank launches REPAIR program to boost climate resilience in Eastern & Southern Africa
1st August 2024
The World Bank's recently approved Regional Emergency Preparedness and Inclusive Recovery Program (REPAIR), which African Risk Capacity Limited will implement, is set to enhance Eastern and Southern African countries' resilience against climate shocks and attract $205 million in private capital to support these efforts. According to the World Bank, over six ... Read the full article
Vortex’s parametric rainfall cover triggered at PGA Tour Champions event
23rd July 2024
The DICK's Sporting Goods Open, PGA TOUR Champions Event received rain from June 21–June 23, triggering their parametric rainfall insurance policy with Vortex Weather Insurance, the data driven weather risk insurtech, which resulted in the tournament operator Broome County Community Charities, Inc., (BCCC) receiving payouts that helped with lost revenue ... Read the full article
CCRIF member payouts in Grenada reach $55.6m
22nd July 2024
In addition to the $44 million paid to the Government of Grenada by CCRIF SPC following damage from Hurricane Beryl, payouts to both the Grenada Electricity Services Limited and the National Water and Sewerage Authority under their policies have now been made. According to Isaac Anthony, CCRIF CEO, these payouts ... Read the full article
Global Parametrics and One Acre Fund deliver parametric solution for Zambia and Malawi farmers
12th July 2024
One Acre Fund and Global Parametrics, a CelsiusPro Group company, have partnered to provide financial protection for smallholder farmers in Zambia and Malawi against the financial strain of losing their crop due to drought. Using data collected and verified by One Acre Fund from individual farmers, the companies developed a water-balance ... Read the full article
Hurricane Beryl triggers all CCRIF parametric policies for Grenada
11th July 2024
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) will make payouts totalling around US$44 million to the Government of Grenada following the passage of Hurricane Beryl, which triggered all of the company’s parametric policies for the country. Hurricane Beryl devastated 90% of all buildings – the airport, marinas, gas stations, the hospital ... Read the full article
CCRIF SPC makes full payout to Guatemala under excess rainfall policy
4th July 2024
CCRIF SPC reportedly made a payout on July 1st of $6,376,184 to the Government of Guatemala following heavy rains from June 13th to 19th. According to CCRIF, this payout represents the Government of Guatemala’s full payout under its excess rainfall (XSR) policy, meaning that the policy has reached its coverage limit. The ... Read the full article
Allianz develops parametric solution to support Colombian farmers battling climate change
26th June 2024
Allianz Colombia has developed a new product, based on a parametric insurance policy, that would help protect the country’s farmers livelihood as well as access to credit to strengthen their financial resilience. The parametric insurance policy would be triggered by predetermined parameters, in this case rainfall levels that endanger crops, either ... Read the full article
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