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.
Ascot announces new parametric insurance capabilities
2nd April 2024
Global specialty insurance firm Ascot has announced the establishment of a new parametric insurance capability to complement its Property offering. This enhanced capability will be led by Mark Pepper, Ascot Group Chief Underwriting Officer and supported by the London property underwriting team. Available across perils and a range of industries, Ascot’s parametric ... Read the full article
Parametric insurance, an effective tool to address earthquakes: Swiss Re’s Linkin
28th March 2024
Parametric insurance is becoming more mainstream and has become a great tool to complement traditional insurance as the potential devastating impacts of perils like earthquakes increase, Megan Linkin commented in a recent interview with Reinsurance News. Findings from the latest USGS National Seismic Hazard Model (NSHM) revealed that there is a ... Read the full article
Majority of industry respondents expect use of parametric triggers in reinsurance to rise in 2024
28th March 2024
According to a recent Reinsurance News poll, over 80% of industry respondents anticipate the use of parametric triggers in reinsurance arrangements to rise in 2024. Parametric news has featured heavily in our pages so far this year, though admittedly, this has been largely insurance-related. For example, speaking in an interview with ... Read the full article
Chaucer enters weather insurance market with new parametric product
25th March 2024
Global specialty re/insurer Chaucer has entered into the weather insurance market with a new parametric weather product to cover non-damage business interruption. The new product aims to provide coverage for weather-related losses for weather events that fall outside a pre-established range of variables such as temperature, wind speed or precipitation. Chaucer has ... Read the full article
Zurich and Klook launch parametric benefit to provide real-time lounge access for delayed flights
21st March 2024
Zurich Insurance has partnered with travel and leisure e-commerce platform Klook to introduce FlyEasy coverage, which, powered by Zurich Edge platform with micro-services from Blink Parametric, aims to reduce customer stress from long flight delays at airports. Available for Singapore residents, FlyEasy offers travellers real-time, complimentary lounge access - available through ... Read the full article
Lloyd’s teams with UNCDF to run parametric insurance training in climate vulnerable countries
19th March 2024
Lloyd’s, the world’s oldest insurance and reinsurance marketplace, and the United Nations Capital Development Fund (UNCDF) are set to run parametric insurance training in climate vulnerable countries. According to the announcement, Lloyd's has progressed a partnership with the UNCDF and the Sustainable Markets Initiative’s Insurance Task Force with the delivery of ... Read the full article
WTW gets USAID funding to develop climate-resilient insurance solution
18th March 2024
Global advisory, broking, and solutions firm WTW has revealed it will receive funding from the U.S. Agency for International Development (USAID) to develop a climate-resilient insurance solution that aims to unlock climate adaptation investment from the private sector. Utilising this new USAID funding, WTW said it will design a pilot facility ... Read the full article
Demand for parametric insurance to rise in 2024 amid growth in confidence: Swiss Re’s Hotz
7th March 2024
Speaking in an interview with Reinsurance News, Martin Hotz, Head Parametric Nat Cat, Swiss Re Corporate Solutions, suggested that the demand for parametric insurance will continue to rise in 2024, as "there is no fine print in a parametric policy, which clients appreciate in these uncertain times." According to Hotz, the ... Read the full article
ARC payouts exceed $170m as parametric insurer celebrates 10th anniversary
4th March 2024
African Risk Capacity Limited (ARC Ltd.), the parametric insurer and financial affiliate of the ARC Group, has paid out over $170 million in claims to support vulnerable communities since its inception. Founded in 2014, ARC Ltd. celebrates its 10th year of establishment with the intent to help governments better respond to ... Read the full article
Floodbase’s parametric flood insurance programs to support farmers in Mozambique and Malawi
4th March 2024
Floodbase has been awarded a grant to launch parametric flood insurance programs for farmers in Mozambique and Malawi, with support from African Risk Capacity Limited (ARC Ltd.) and Global Parametrics. In Mozambique, over 80% of people depend on agriculture for their livelihoods, and 99% of smallholder farmers in Africa are uninsured ... Read the full article
Miller expands into parametric insurance market
1st March 2024
Insurance and reinsurance broker Miller's expansion into the parametric insurance market will be led by Alice Glenister, who joins the firm from Mastercard where she was Director of Insurance. Miller's newly formed parametric team will have an exclusive focus on parametric insurance and bring deep knowledge of the application of parametric ... Read the full article
Africa Specialty Risks forms parametric partnership to close protection gap in Africa and Middle East
29th February 2024
Africa Specialty Risks (ASR) has reportedly formed a parametric reinsurance partnership with a leading European reinsurer to increase its coverage for vulnerable populations and economies in Africa and the Middle East. The partnership was facilitated by Inver Re. According to ASR, the agreement will double its parametric capability for smallholder farmers, ... Read the full article
Venture Programs selects Vortex as parametric partner for private golf clubs
23rd February 2024
Venture Insurance Programs has chosen Vortex Weather Insurance, an insurtech specialising in weather risk management for outdoor venue hosts and golf clubs, to be their sole provider of parametric weather insurance policies. This agreement represents Vortex's first partnership as a managing general agency, with clubs now having access to its parametric ... Read the full article
Gallagher Specialty launches Parametric Insurance Centre of Excellence
22nd February 2024
Gallagher Specialty has created a Parametric Insurance Centre of Excellence designed to respond to changing market conditions and client demand. The centre of excellence reportedly includes a team of climate risk specialists, parametric brokers, an actuarial and modelling team, and risk modelling technology developed by Gallagher Specialty. "This specialist team will provide ... Read the full article
PCRIC to administer WTW developed parametric insurance solution for Fiji’s Lau Group
20th February 2024
The Vatuvara Foundation Fiji, in collaboration with WTW and Fiji-based broker, Insurance Holdings (Pacific) Pte Ltd., has selected the Pacific Catastrophe Risk Insurance Company (PCRIC) to administer a new parametric insurance solution designed to provide rapid payout after a tropical cyclone damages the reef. NGO, the Vatuvara Foundation, is committed to ... Read the full article
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