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.
AXA Climate renews parametric insurance to safeguard marine protected areas
21st October 2024
AXA Climate has announced the renewal of parametric insurance coverage for 88 Marine Protected Areas (MPAs) in the Philippines. In partnership with Blue Alliance Marine Protected Areas and Howden, this initiative bolsters the financial stability of communities and ecosystems alike. It protects over 90,000 hectares of coral reefs and ensures the livelihoods ... Read the full article
AIR Parametric launches new dairy product with Guy Carpenter & LM Re
18th October 2024
In collaboration with Guy Carpenter and Liberty Mutual Reinsurance, AIR Parametric has launched Milkshake, a new parametric insurance product designed to safeguard US dairy producers from heat stress on their livestock herds. According to Air Parametric, Milkshake’s proprietary design was built in consultation with dairy industry leaders and the specialised agents ... Read the full article
AXA Climate renews parametric partnership with AXA México for mangroves protection
16th October 2024
AXA Climate, an arm of the global insurance group AXA, has renewed its partnership with AXA México and ClimateSeed this year to continue supporting a vital mangrove protection project. This collaboration aims to provide a parametric insurance product designed to safeguard both the community of fishermen and the vital ecosystems in ... Read the full article
BOAD to use parametric insurance to cover sovereign loan portfolios
15th October 2024
The West African Development Bank (BOAD) has launched the "Shock Resilient Loans" program under its sovereign loan portfolio, covered by parametric insurance against natural and health disasters, supported by Munich Re. The project’s pilot phase covers Benin, Côte d’Ivoire, Senegal and Togo, a loan portfolio in these countries totalling over USD350 ... Read the full article
Parametric insurance crucial for closing $1.8 trillion protection gap: Generali & UNDP
7th October 2024
Parametric insurance is key for closing the US$1.8trillion protection gap for communities and countries on the frontlines of interrelated crises, including climate change, according to Generali and the United Nations Development Programme (UNDP). Generali has produced a report with the UNDP, highlighting how parametric insurance can support governments, businesses and communities ... Read the full article
‘Consistent capacity’ is needed to help close protection gap in Africa: Shah, ASR CEO
4th October 2024
As a developing Continent that is seeing increased interest in business investment, Africa presents growth opportunities for insurers and reinsurers, Mikir Shah, CEO of Africa Specialty Risks (ASR), said in a recent interview with Reinsurance News. At the same time, there is a shortage of insurance capacity across the continent, which ... Read the full article
AI-powered climate risk platform launched by Adaptive Insurance
3rd October 2024
A new parametric insurance platform, Adaptive Insurance, powered by artificial intelligence (AI) has launched with a mission to change how businesses safeguard against climate risks. The company’s flagship product GridProtect will offer immediate, technology-driven financial relief businesses impacted by power outages responsible for $150 billion in annual losses. Power outages are a ... Read the full article
LM Re & Safehub sensor-triggered parametric coverage to protect UC campuses from earthquake damages
2nd October 2024
Liberty Mutual Reinsurance (LM Re), the reinsurance arm of Liberty Mutual, and Safehub, a technology provider in seismic sensor and risk management solutions, have entered into a partnership with the University of California (UC) to protect their campuses from the risk of earthquake damage. The UC coverage is reportedly the first sensor-triggered ... Read the full article
MGA and fronting re/insurer Trigger Parametric launches
2nd October 2024
Trigger Parametric, a new parametric underwriter has been launched with the aim to model, structure, and place parametric cover for natural and man-made perils globally. A UK entity, Trigger Parametric intends to operate as both a managing general agent (MGA) and as a fronting re/insurer underwriting global parametric risks. Raveem Ismail, William ... Read the full article
FloodFlash’s parametric coverage ensures rapid payouts to UK clients after floods
27th September 2024
FloodFlash’s UK clients with parametric coverage have been promptly notified that their claims are in progress following recent rainfall-related floods, ensuring a seamless claims process. Clients benefit from FloodFlash’s accurate flood readings during events and the rapid processing of claims once coverage is triggered. In a recent LinkedIn post, Ian Bartholomew, Co-founder ... Read the full article
Vortex increases parametric hurricane insurance limit to $500,000
18th September 2024
Vortex Weather Insurance, a parametric weather insurtech, has announced an increased available limit of $500,000 for its parametric hurricane insurance, available to businesses along the Atlantic and Gulf Coasts. This type of insurance provides supplemental coverage triggered by specific data, helping to cover unexpected costs such as deductibles and lost business ... Read the full article
WRMS targets greater climate resilience with expansion into Latin American markets
13th September 2024
Weather Risk Management Services (WRMS), the agriculture and climate risk management firm, is expanding its operation to key markets in Latin America as it works to bring climate resilience for sustainable growth within the region. The strategic expansion will focus on Argentina, Paraguay, Colombia, Brazil, Chile, Ecuador, Peru, Uruguay, and all ... Read the full article
CelsiusPro and Tower launch IT platform for parametric cover in the Pacific
12th September 2024
Parametric insurtech CelsiusPro and Tower, a New Zealand and Pacific insurer, have successfully launched the previously announced IT platform for parametric insurance distribution for Tower, beginning with its Cyclone Response Cover in the Pacific Island countries of Fiji and Tonga. The product provides policyholders with rapid cash payouts when their ... Read the full article
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
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