parametric trigger

As the reinsurance market continues to expand and adapt to the current wave of technological change, increasing capital diversity is enabling the development of new products. At the same time, data-driven enhancements in modeling tools and risk-analysis processes are encouraging a broader range of investors to back reinsurance, according to Willis Re.

The Asian Development Bank (ADB) has approved plans to issue a pilot parametric catastrophe bond for Kyrgyz Republic and Tajikistan which could be as much as $100 million in size, protecting both countries against earthquake and flood risks.

Abaxx Technologies, a start-up financial software and market infrastructure company, has launched the Enwex German Wind Futures on the Abaxx Exchange, which marks the introduction of a new suite of weather derivatives.

VivoPower, a sustainable energy solutions organisation, and KWeather, a climate risk management solutions company, have signed an exclusive heads of agreement deal that will see both firms collaborate to build the world’s first WeatherCoin, a weather derivative token for climate risk management.

Willis, a business of insurance and reinsurance broker WTW and Rare, the global conservation organisation have teamed up to launch a parametric insurance solution for small-scale fishers in the Philippines, with capacity provided by the Natural Disaster Fund (NDF).

Ministers from the G20, or Group of Twenty forum for global economic cooperation, recently came together in South Africa for annual meetings and the Disaster Risk Reduction Working Group advocated for the enhancement of risk transfer solutions, particularly including use of parametric insurance, risk pools, and catastrophe bonds.

Insurance and reinsurance broking firm Aon has structured and placed the first and largest parametric forest fire insurance policy ever undertaken in Brazil, developed for stationery manufacturer Faber-Castell.

Having already seen its parametric tropical cyclone insurance triggered by major hurricane Melissa’s winds, Jamaica is now set to also benefit from a payout under its CCRIF SPC parametric excess rainfall policy, taking the total it will receive to $91.9 million.

Liberty Latin America, one of the largest communications and entertainment service providers in the region, is anticipating around an $81 million payout from its parametric windstorm insurance after hurricane Melissa activated its coverage in the Caribbean.

The Bermuda Monetary Authority (BMA) has confirmed that it plans to release a consultation paper in the fourth quarter of 2025 regarding the establishment of a new special purpose insurer (SPI) that will primarily focus on the use of parametric triggers.