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.
ARC Ltd. partners with US gov to expand parametric insurance in Africa
13th February 2024
African Risk Capacity Limited (ARC Ltd.) and the United States Government (USG) have entered into a $11.7 million partnership to increase access to parametric insurance in Africa and safeguard food security. According to ARC Ltd., this newly announced project aims to protect vulnerable smallholder farmers facing increasing climate change-related disasters while ... Read the full article
Parametric reinsurance a “beacon” in a challenging market: Augment Risk
9th February 2024
Parametric re/insurance solutions can be a “beacon” in a challenging market environment as they can provide clients an alternative to traditional products, alongside catastrophe bonds, industry-loss warranties (ILW’s) and retrocession, Augment Risk believes. 2024 can see several risks on the horizon that lend themselves to parametric placements, the broker explains, particularly ... Read the full article
Demand for parametric solutions to increase in 2024: Aon
9th February 2024
Demand for parametric covers from corporates and public entities will continue to increase to provide quick liquidity after a disruptive event, address gaps in traditional insurance coverage, and cover non-traditional risks, according to Aon's Q4 2023 Global Insurance Market Insights Report. Aon suggested that parametric solutions have now been tested in ... Read the full article
WTW unveils parametric insurance protection for endangered South Pacific coral reef system
5th February 2024
Broker WTW, has launched a new parametric insurance policy that will help protect the coral reef system of the South Pacific Ocean’s volcano-formed Lau Group of islands, which is regarded as being one of the most vulnerable and isolated places on Earth. Located on the eastern side of the Fiji archipelago, ... Read the full article
Munich Re forms global parametric NatCat solutions team
5th February 2024
European reinsurer Munich Re has announced the formation of a global parametric team focusing on natural catastrophe risk transfer solutions, bringing together experienced colleagues from around the world. The market for parametric solutions is highly dynamic and still gaining pace. It complements traditional insurance by providing post-catastrophe liquidity and coverage for ... Read the full article
Descartes launches cyber risk parametric solution in France
1st February 2024
Insurtech Descartes has announced the launch of Cyber Shutdown Cover, a parametric solution dedicated to cyber risk in France. This new solution demonstrates the firm's ambition to gradually extend its scope to emerging risks beyond just natural hazards. "Our research team - which is constantly expanding - is also working on other ... Read the full article
SecuRisk ensures the availability of reliable data for risk assessment & pricing: WRMS
29th January 2024
In April 2023, Weather Risk Management Services (WRMS), the agriculture and climate risk management firm, launched SecuRisk, a digital-first global parametric insurance marketplace, that aims to address the gaps and challenges in emerging economies regarding insurance coverage. During a recent interview with Reinsurance News, Anuj Kumbhat, Co-Founder & CEO of ... Read the full article
Arbol executes unique parametric risk transfer in water risk management
26th January 2024
Arbol, the global climate risk coverage platform, has executed an innovative parametric risk transfer on the NASDAQ Veles California Water Index NQH2O. A first-of-its-kind trade, which has a call spread option that expires on June 20, 2024, represents a major step in managing climate-related financial risks, particularly within the water sector. The ... Read the full article
Blink Parametric strengthens partnership in Canada, adds one in Switzerland
26th January 2024
Blink Parametric has extended its partnership with Blue Cross, as it has secured a further three-year with the Canadian insurance provider. The Irish insurtech has also announced its partnership with Baloise, one of the largest Swiss all-industry insurance service providers for individuals and businesses. Blue Cross was the first to launch ... Read the full article
Parametric insurance a valuable addition to climate risk management landscape: WRMS
25th January 2024
Parametric insurance is said to be significantly disrupting and complementing traditional insurance models across the climate industry, by offering innovative solutions that address the shortcomings of conventional approaches. In the face of climate-related risks, assessing and quantifying damages accurately can be a very challenging task, but through the use of parametric ... Read the full article
Capella Space partners with Floodbase to enhance parametric flood insurance
25th January 2024
In a strategic move to address the growing challenges of flood risk exacerbated by climate change, Capella Space Corp., a prominent American space tech company specialising in satellite solutions, has announced a partnership with Floodbase, a leading data provider and reporting agent for parametric flood insurance. The collaboration aims to integrate ... Read the full article
FloodFlash expands parametric product to a further 10 US states
16th January 2024
FloodFlash has expanded its offering, with Delaware, Iowa, Missouri, New Jersey, New York, Oregon, South Carolina, Washington, Vermont and Massachusetts now having unrestricted access to its parametric product. FloodFlash explained that minimum premiums apply for risks outside of the states. The firm added that due to demand, it has reduced that minimum ... Read the full article
FloodFlash working to ensure claims from UK flooding will be settled within the next week: CUO
5th January 2024
As parts of the UK continue to be impacted by severe flooding, Ian Bartholomew, Chief Underwriting Officer at flood insurance company FloodFlash, has confirmed that the company is working hard to ensure that most, if not all of its claims will be paid within the next week. After a powerful storm ... Read the full article
NormanMax gets ‘in principle’ Lloyd’s approval to launch parametric syndicate
21st December 2023
US-based parametric re/insurance group NormanMax Insurance Holdings has received ‘approval in principle’ from Lloyd’s to launch parametric Syndicate 3939 in 2024, to be managed by Apollo Syndicate Management. NormanMax noted that Syndicate 3939 aims to commence underwriting in April 2024, "focussing on natural catastrophe parametric re/insurance products that offer a unique ... Read the full article
Role for insurance in Loss and Damage fund, but caution needed: Young, WTW
8th December 2023
The insurance industry needs to be cautious about how it positions itself to support the now operational Loss and Damage fund and not over promise on what it can deliver, Dr. Simon Young, Senior Director, Disaster Risk Finance & Parametrics at WTW, told Reinsurance News around the COP28 summit. On the ... Read the full article
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