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.
DFID & Global Parametrics to support Red Cross volcano cat bond
5th July 2019
The UK Government’s Department for International Development (DFID) and Global Parametrics have agreed in principal to support the world’s first pure-volcano catastrophe bond, launched by the Danish Red Cross. Global Parametrics, a parametric and index-based risk transfer startup backed by the UK and German governments, advised the DFID’s Natural Disaster Fund ... Read the full article
JBA & insurtech Floodflash create parametric flood policy
27th June 2019
Global flood risk modeller JBA Risk Management has partnered with insurtech firm Floodflash to create a UK parametric flood insurance policy. The new product, which JBA and Floodflash claim is an industry first, will provide bespoke insurance for policyholders in frequently flooded areas who have traditionally struggled to obtain cover. It will ... Read the full article
New Paradigm to host parametric re/insurance conference in 2020
21st June 2019
New Paradigm Group, the Florida-based developer of parametric insurance and risk transfer solutions, is due to host its first annual conference on parametric re/insurance in Miami Florida next year. Set for April 2020, the New Paradigm Global Parametric Insurance and Reinsurance Conference will be a forum for learning “how parametric insurance ... Read the full article
AXA Climate to offer parametric insurance for hail storms
5th June 2019
AXA Climate, the specialist parametric risk transfer division of AXA, has announced the launch of a new parametric coverage that aims to protect businesses from hail losses. The product, called Hail Protection, is reportedly the first of its kind and has already been rolled out as a pilot product in Colorado, ... Read the full article
Tremor places programmatic swap deal for parametric cat risk
21st May 2019
Tremor Technologies, the programmatic risk transfer platform, has priced and placed the first ever programmatic parametric swap transaction in insurance form. The insurtech start-up has already priced and placed a number of catastrophe reinsurance programs beginning at the end of 2018, but has moved into new territory with this latest deal. Tremor ... Read the full article
Clyde & Co develops smart contract for parametric insurance
16th May 2019
Global law firm Clyde & Co has launched a new smart contract for parametric insurance, which uses software and data sources to automatically calculate claims obligations and other factors. The contract, which is available through Clyde & Co’s smart contract consultancy, Clyde Code, is the first of its kind, according the ... Read the full article
AXA unveils rebranding of parametric insurance unit to AXA Climate
16th May 2019
Global re/insurer AXA has rebranded its specialist parametric risk transfer division from AXA Global Parametrics to AXA Climate, and has also announced a number of new additions to its team. Initially launched in 2017, the rebranded AXA Climate unit looks to provide clients with parametric risk transfer solutions for climate and ... Read the full article
Guy Carpenter proposes parametric solution for explosive volcanic eruptions
14th May 2019
Reinsurance broker Guy Carpenter has conceptualised and designed a parametric risk transfer solution that looks to mitigate losses to building structures as a result of large, ash fall-producing volcanic eruptions. In a recent article, Catastrophe Risk Analyst at Guy Carpenter, Delioma Oramas Dorta and Guillermo Franco, Managing Director & Global Head ... Read the full article
Swiss Re partners with Falls Lake & Arrowhead on parametric quake solution
11th March 2019
Global reinsurance giant Swiss Re has partnered with primary insurer Falls Lake and managing general agent Arrowhead for the launch of Quake Assist, a parametric insurance solution providing Business Interruption (BI) cover within California, even if no damage occurs to the insured’s building. “What makes this product unique is the fact ... Read the full article
Sompo and Germany’s SV launch parametric agriculture solution
31st January 2019
Bermuda-based property and casualty insurer and reinsurer, Sompo International Holdings Ltd., has announced the introduction of a new innovative agriculture insurance product for the German market, in partnership with German insurer SV SparkassenVersicherung (SV). The new solution, called SV ErnteIndex, has been tailored to the agricultural sector and offers parametric protection against crop ... Read the full article
World Bank renews Philippines catastrophe cover at $390mn
14th January 2019
The World Bank has announced the renewal of a parametric insurance program that helps the Philippines better respond to losses from natural disasters, at an increased size of $390 million. The renewal is almost double the size of the $206 million of insurance coverage secured under the 2017 policy, and provides ... Read the full article
Swiss Re Corporate Solutions introduces parametric water-level insurance
7th January 2019
Swiss Re Corporate Solutions, a division of global reinsurer Swiss Re, has announced the launch of FLOW, a parametric water-level insurance solution. Designed to protect companies in Europe from the financial impact of high or low river water levels - such as lost revenue due to business interruption or increased costs ... Read the full article
Global economy has become less resilient, but insurtech can help: Swiss Re
4th January 2019
The global economy has become less resilient to shocks in the ten years following the financial crisis, but new public-private partnerships, in combination with the use and development of new technological capabilities, can help to strengthen it, according to reinsurance giant Swiss Re. In the company’s latest sigma report, titled ‘Global ... Read the full article
The Philippines secures $386m parametric insurance policy
20th December 2018
With assistance from the World Bank, the Philippines’ Department of Finance has announced the successful placement of a parametric insurance policy that provides up to US$386 million of cover to 25 high-risk provinces throughout the country’s eastern seaboard. This appears to be a renewal of an arrangement made last year ... Read the full article
New Paradigm receives investment from TransRe
12th November 2018
New Paradigm Group, a Florida-based developer of parametric insurance and risk transfer solutions, has announced that it has received an investment from global reinsurer TransRe, the reinsurance arm of Alleghany Corporation. New Paradigm is reportedly to use the proceeds to expand its proprietary parametric data platform and also to enhance its ... Read the full article
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