Parameter Climate, a parametric risk transfer and climate focused underwriter launched by well-known industry executive Marty Malinow, has received backing from specialty insurance and reinsurance player SiriusPoint, which has made an investment into the company.
Calling the arrangement a “strategic partnership” SiriusPoint said it has purchased a significant ownership stake in Parameter Climate and is also set to provide it with multi-year capacity and paper.
Additional capacity to support Parameter Climate’s expansion has also been secured from another leading global reinsurance company.
Headquartered in New York City, Parameter Climate was founded by Martin Malinow, an executive with a significant track-record in the weather risk management and parametric climate risk transfer market.
Malinow’s thirty year career saw him begin in the capital markets as a fixed-income derivatives trader and portfolio manager before joining what was the weather derivatives and weather risk management marketplace in the late 1990s.
He’s been a pioneer in that sector, previously co-founding two companies prior to Parameter Climate – XL Weather & Energy and Galileo Weather Risk Management Advisors LLC.
He then went on to take on the role of President of Sompo Global Weather, before departing to work on his own start-up business.
Parameter Climate has a veteran team focused on building an end-to-end business model, to provide advisory, structured financial products, distribution, and underwriting services to the growing market for climate risk transfer.
Malinow sees this as increasingly important as corporations and public entities undertake efforts to calculate, disclose and eventually manage their Environmental, Social, and Governance (ESG) risks, of which climate is a major driver.
“We see a secular opportunity in helping to build a new market in climate risk transfer that will be integral to the continued growth and sustainability of the global economy,” explained Malinow, Chief Executive Officer of Parameter Climate. “We are excited to partner with SiriusPoint on this opportunity – they bring the balance sheet capacity and financial resources for Parameter Climate to provide underwriting and distribution leadership to the growing climate market.”
Sid Sankaran, Chief Executive Officer of SiriusPoint, added “With this partnership, SiriusPoint is investing in human expertise and data driven technology solutions to enable the transfer of climate risk to the insurance and capital markets. Parameter Climate’s approach and their highly-experienced parametric team are providing a solution for the ‘E’ in ESG. We are delighted to be a part of that vision.”
At Parameter Climate, Malinow’s ambition is to connect a pre-eminent team of parametric and weather risk transfer experts with the use of advanced technology, allowing the company to digitize and scale the distribution and underwriting of parametric climate risks.
“From global corporations looking to manage their climate exposures, to insurers and institutional investors wanting to create solutions to support these ESG challenges, Parameter Climate will play a key role in helping this diverse set of participants analyze, underwrite, package and distribute climate risk efficiently,” Malinow said.
SiriusPoint’s investment into Parameter Climate is both a testament to the business and team Malinow has created, as well as to the significant opportunity in parametric climate, weather and catastrophe risk transfer.