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 XL report highlights mangrove potential as natural coastal defence
12th November 2020
Insurance could provide a cost-effective method to help conserve and restore mangrove forests as a way to protect against coastal flooding, according to a report supported by AXA XL. The report, published by The Nature Conservancy and University of California, Santa Cruz identifies 3,000 km of coastline across 20 states, territories ... Read the full article
Swiss Re backs parametric quake product by Cover Genius & QuickBooks
23rd October 2020
Insurtech firm Cover Genius has teamed up with Intuit to offer a new parametric earthquake policy, which is backed by capacity from Swiss Re and underwritten by Palomar Excess and Surplus Insurance Company. Cover Genius intends to offer a range of insurance products to customers using QuickBooks, an accounting software package ... Read the full article
Parametric triggers the solution to pandemic backstop: Third Point Re’s Tracey Gibbons
19th October 2020
While it is clear that the enormous risks posed by future pandemics can only be tackled through public-private partnerships, the solutions proposed so far fail to fully contend with the scope and complexity of a global systemic threat of this nature. This is where parametric triggers come in, says Third Point ... Read the full article
CCRIF launches parametric product for electric utilities
6th October 2020
The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) has announced the launch of its newest parametric insurance product, developed for the electric utility sector in the Caribbean. The electric utilities product aims to limit the financial impact of tropical cyclones by providing financial liquidity to electric utility companies ... Read the full article
Lloyd’s launches parametric policy for business interruption
30th September 2020
Insurance and reinsurance marketplace Lloyd’s of London has launched a new business interruption policy for small and medium sized enterprises (SMEs) that uses a parametric trigger to protect against IT disruption or downtime. The new product, called Parametrix Insurance, is led Tokio Marine Kiln (TMK) and supported by other members of ... Read the full article
ARC partners with insurtech Pula on agric index insurance products
29th September 2020
The African Risk Capacity Limited (ARC Ltd), a commercial subsidiary of African Risk Capacity Group (ARC Group), has signed a partnership agreement with Pula to help provide agriculture index insurance products to the continents' farmers. African farmers are exposed to a range of climate risks including drought, excessive rainfall, pests and ... Read the full article
Insurtech FloodFlash launches expanded parametric product
22nd September 2020
Insurtech FloodFlash has launched the newest iteration of its commercial parametric flood insurance, FloodFlash+. FloodFlash+ sees policies underwritten by a panel of insurers and reinsurers and allows clients to select multiple sensors for a single site, cover multiple properties in a portfolio under a single policy, or include third party data from river ... Read the full article
Munich Re to partner with digital agriculture firm Farmers Edge
15th September 2020
Global reinsurer Munich Re is partnering with digital agriculture firm, Farmers Edge, on data-driven parametric weather insurance solutions. Farmers Edge says Munich Re’s reinsurance expertise will help combat risks associated with parametric coverage while also establishing business resiliency amid the COVID-19 pandemic. The Farmers Edge risk management platform FarmCommand helps automate all ... Read the full article
AXA Climate, SatSure to offer parametric solutions for private & public sector
8th September 2020
AXA Climate and SatSure AG have signed a Memorandum of Understanding (MoU) to jointly offer parametric insurance solutions for private and public sector institutions on a global scale. AXA sees climate risk understanding and mitigation as key in reducing the financial consequences that climate-related events may have on communities and businesses. As ... Read the full article
Global Parametrics renews Mexican reef cover, backed by Hannover Re
3rd September 2020
Global Parametrics, the parametric and index-based risk transfer startup, has led the renewal of a MXN 42.5 million (USD 1.9 Million) Mexican Reef Protection Program with reinsurance support from Hannover Re. Global Parametrics structured a parametric solution which pays out to support the restoration of a section of the Mesoamerican reef ... Read the full article
Global Parametrics provides solution for world’s remotest island
18th August 2020
Global Parametrics, the parametric and index-based risk transfer startup backed by the UK and German governments, has structured a solution to provide parametric protection for the world’s most remote habitable island. The solution provides protection against extreme windstorms for the Tristan Lobster Processing Facility, the main business on Tristan da Cunha, ... Read the full article
Consider parametrics to manage COVID-19 insurance gap, says GlobalData
13th July 2020
In order to address the significant insurance protection gap that has been highlighted by the ongoing COVID-19 outbreak, parametric structures should be considered, according to GlobalData. As lockdown measures came into effect around the world, businesses of all shapes and sizes turned to their insurers for assistance through their business interruption ... Read the full article
Storm Amanda a “critical test” of parametric cover, says MiCRO
10th July 2020
Tropical Storm Amanda, which recently triggered insurance payouts for El Salvador and Guatemala, was a “critical test” of the index-based insurance cover these countries have in place, according to the Microinsurance Catastrophe Risk Organization (MiCRO). MiCRO designed the excess rainfall coverages that triggered the payouts in collaboration with its local partners ... Read the full article
German gov assists ARC members with €19mn COVID-19 support programme
18th June 2020
In light of the ongoing COVID-19 pandemic, the German government has committed to assume premium payments of approximately €19 million for the drought insurance offered by the African Risk Capacity (ARC). In a recent video message, Maria Flachsbarth, Parliamentary State Secretary at the German Federal Ministry for Economic Cooperation and Development ... Read the full article
Swiss Re helps Indian state secure parametric insurance against flooding
16th June 2020
Global reinsurer Swiss Re has announced its role in helping India's northeastern state of Nagaland secure parametric insurance for excess rainfall events that can lead to severe flooding. The cover is based on a geospatially gridded dataset whose precipitation levels are derived from satellite observations. The parametric structure is designed to cover ... Read the full article
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