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.
CCRIF members renew parametric insurance policies, GRENLEC joins
6th September 2023
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has announced that its members renewed their parametric insurance policies at June 1, while GRENLEC, Grenada’s electric utility company, also purchased coverage for the first time. According to CCRIF, June 1 2023 marked 16 years since Caribbean governments began purchasing CCRIF parametric insurance coverage ... Read the full article
CelsiusPro acquires Global Parametrics
6th September 2023
CelsiusPro AG has acquired Global Parametrics Holding Company Limited in a transaction that "significantly strengthens its global capabilities to offer parametric risk transfer solutions to both private and public sector clients in developed and developing economies." According to CelsiusPro, the acquisition creates an even stronger offering along the value chain of ... Read the full article
LM Re, XS Global & Safehub launch world’s first sensor-based reinsurance treaty for earthquake risk
5th September 2023
Liberty Mutual Re, the reinsurance arm of Liberty Mutual Insurance Group, MGA XS Global, and technology provider Safehub, have launched the world's first sensor-based, parametric reinsurance treaty for earthquake risk. According to the announcement, this treaty marks a new era of disaster risk management for insurance firms, risk managers and policyholders, ... Read the full article
Beazley introduces parametric tornado disaster benefit insurance
31st August 2023
Specialty insurer Beazley has introduced the first admitted parametric tornado disaster benefit insurance for homeowners, in partnership with Sola Technologies and Spinnaker Insurance Company. The innovative Tornado Crisis product leverages National Weather Service (NWS) data to automatically initiate a fast and straightforward claims process. Neil Kempston, Head of Incubation Underwriting at Beazley, ... Read the full article
FloodFlash partners with Hiscox to accelerate US growth ambitions
7th August 2023
Parametric flood insurance company FloodFlash has announced a new partnership with Hiscox to drive its US growth ambitions. "Hiscox is already an active participant in the US flood insurance market, and as a capacity provider for FloodFlash will support the market appetite for parametric as an efficient option for catastrophe covers," ... Read the full article
Vortex Insurance parametric cover triggered at PGA TOUR Champions Event
19th July 2023
The DICK'S Sporting Goods Open received rain from June 23-25, triggering their rain insurance policy with Vortex Weather Insurance, which resulted in the tournament operator, Broome County Community Charities, receiving payouts that helped with lost revenue. Earlier this month, it was announced that for the second consecutive year, Vortex Weather Insurance ... Read the full article
WTW unveils Asia’s first 4-peril parametric insurance offering
12th July 2023
WTW, a global advisory and broking company has launched Asia’s first 4-peril parametric insurance to protect Sri Lanka’s shrimp farms against weather risks, marking a major turning point in Asia’s aquaculture development. According to the firm, the solution was designed and placed for Taprobane Seafood Group - Sri Lanka’s largest seafood ... Read the full article
Skyline Partners to work with risk expert MacDonald for parametric support
7th July 2023
Broking veteran Ken MacDonald is to advise and support Skyline Partners’ clients in product development, distribution, and funding, through MacDonald’s newly launched Ri3K Consulting, the parametric specialist has announced. “Parametric structures are rapidly being adopted as a credible and extremely efficient alternative to conventional risk transfer. They are delivering a radical ... Read the full article
Aon completes “historic” parametric insurance program for Puerto Rico
6th July 2023
Aon, a prominent global professional services firm, has successfully completed a "historic" parametric insurance program for the Government of Puerto Rico. This initiative aims to assist the island in reducing its insurance obligation to the U.S. Federal Emergency Management Agency (FEMA), providing diversified insurance protection against hurricane and earthquake perils. Representing the ... Read the full article
Global Parametrics & One Acre Fund partner with Howden to expand parametric scheme
4th July 2023
Global Parametrics (GP) and One Acre Fund have partnered with international insurance group, Howden, to bolster its parametric protection scheme in Rwanda this year. Howden has provided premium subsidy to support the expansion of this scheme in the country, allowing One Acre Fund to purchase more coverage and extend its assistance ... Read the full article
CCRIF receives $4.7m from EU to subsidise parametric insurance program
3rd July 2023
The European Union has provided $4.7 million to members of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) to subsidise its 2023 parametric insurance program. Provided through a programme administered by the World Bank, the EU funds enabled CCRIF to provide discounts of approximately 14% on the gross premium of members’ tropical ... Read the full article
Parametric insurance leaving the niche: Moody’s RMS & Swiss Re Corporate Solutions interview
29th June 2023
Helped by the capabilities of solutions such as Moody’s RMS’ HWind, parametric insurance is being leveraged more broadly to the benefit of the entire value chain, according to Callum Higgins, Moody’s RMS, and Martin Hotz, Swiss Re Corporate Solutions. Our insurance-linked securities (ILS) focused sister publication, Artemis, Read the full article
Insurtech Raincoat raises additional $6.5m in seed funding
27th June 2023
Raincoat, a startup developing scalable climate insurance solutions, has announced the closing of an additional $6.5 million seed round. This follows the $4.5 million Raincoat raised last year, bringing its total raised to date to $11 million. According to the announcement, the latest round of capital will support the company's expansion ... Read the full article
Vortex’s supplemental parametric hurricane insurance now available
27th June 2023
Vortex Insurance’s supplemental parametric hurricane insurance is now available online for for small and medium-sized businesses in parts of the US. Launched on March 2023, the insurtech company stated its supplemental hurricane insurance will work to cover gaps left in place by traditional insurance policies. The one-year supplemental coverage is triggered ... Read the full article
Kettle offering parametric hurricane reinsurance in the US using Reask’s model & data
26th June 2023
Climate analytics and technology driven risk modelling firm Reask, has entered into a partnership with InsurTech MGA Kettle, which will allow Kettle to offer location-level, wind speed-based parametric hurricane reinsurance in the US. According to the announcement, this new partnership will allow Kettle to expand its climate-related offering to include parametric ... Read the full article
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