In some situations, parametric insurance and risk transfer arrangements can benefit the protection buyer by providing coverage that wouldn’t have been available under a traditional indemnity insurance policy. You can learn about this and more in our upcoming live webcast (register here).
This can be especially true for large corporations and globally active organisations, with operations in regions where severe weather and natural disaster events can pose a significant threat to their business continuity and as a result revenues. As asset values continue to increase and severe weather is increasingly seen to be prevalent, it’s time for insurance buyers to consider the role of parametric protection.
Buyers of parametric insurance are increasingly learning that adding parametric insurance structures to their overall programs can benefit them when significant loss events occur.
We’re hearing from a growing number of corporate risk transfer buyers that have restructured their property and business insurance programs, to add in elements of parametric coverage with the goal of reducing basis risk when catastrophes or impactful weather occurs.
Traditional insurance, while exceptionally good at covering direct property losses, can often prove either challenged, or just too expensive, to provide adequate cover for business interruption and continuity related impacts.
While some of the most impactful losses businesses experience can actually come from the shutting-down of their activity in the wake of storms, floods, hurricanes, earthquakes and other severe climatological events, but the traditional insurance can be both slow to recover, or fail to recover the loss of revenue at all.
While parametric risk transfer is often said to hold basis risk for the protection buyer, as it may not pay out the precise amount needed to cover the physical damage that occurred, the same can be said about some traditional covers that fail to reimburse the buyer for loss of revenue and business activity (from the insurance buyers perspective).
So is the best solution a hybrid approach? A mix of traditional property and business insurance, with specific parametric covers also in place that are designed to payout rapidly on the occurrence of specific loss events?
This is just one of the topics we will be discussing in our upcoming live webcast: The Power of Parametric Solutions for Climate Resilience.
The Weather Risk Management Association (WRMA) and Artemis have partnered to host a live webcast on April 29th 2021 to discuss the role of parametric solutions in supporting climate resilience. The event will feature senior leaders from across the weather risk management and re/insurance space.
Register online here to secure your place at this free live webcast event.
In this WRMA webcast, kindly supported by sponsor Descartes Underwriting, we will reveal how parametric solutions can provide a powerful alternative to traditional insurance mechanisms for protecting against the financial impact of severe weather events and climate variability.
This live and free-to-attend webcast event will be held at 11am EST (4pm BST) on April 29th 2021. It will also be available on-demand, so if you can’t make the live broadcast it’s still worth registering for the webcast.
Our expert panellists will discuss: why parametric solutions can be a key tool in building resilience against climate related risks; what risk managers need to know about the range of options available; why parametric solutions can be even more appealing in a hard property insurance market; and why risk protection buyers should consider them within their suite of risk financing arrangements.
Registration is free and attendees can expect a vibrant discussion on some of the opportunities presented by parametric solutions for those exposed to climate related risks.
Joining moderator Steve Evans for this webcast are:
- Alain Lagesse, Director Group Risk Management, LVMH.
- Daniel Vetter, Head of North America, Descartes Underwriting.
- Julian Roberts, Managing Director, Risk & Analytics, Willis Towers Watson.
- David Whitehead, Co-CEO, Speedwell Weather.
We hope you will be able to join us for the webcast, please register now to secure your free attendance.
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