index based insurance

Chinese insurance giant Ping An Property & Casualty Insurance continues to develop innovative parametric insurance products that support the green and blue economy, with the latest being a parametric index trigger product that provides ocean carbon sink risk protection.

Kenyan reinsurance company ZEP-RE is partnering with Planet Labs, a satellite imagery and data provider, to develop enhanced indices that can be used within the trigger and calculation process for parametric drought insurance products in Africa.

International law firm, Clyde & Co., expects global insurers and reinsurers to focus on the potential opportunities and challenges represented by the protection gap as resilience takes centre stage in 2018, highlighting the benefits and expansion of parametric solutions.

Index-based, or parametric structured insurance solutions, while beneficial and expanding across the world, require greater supervision, according to Lead Insurance Specialist at the World Bank, Craig Thorburn.

The World Bank’s Global Index Insurance Facility (GIIF) and African Reinsurance Corporation (Africa Re) have teamed up to provide a facility that will help to cap insurers loss ratios on weather index-insurance schemes in Africa.

Sciemus, the London-based specialist risk modelling and analytics firm for insurance and reinsurance markets, has launched what it terms a “unique” weather hedging management product, an index-based lack of sunlight insurance cover for solar farm operators.

The World Bank continues to aid in the fight against severe weather and climate change’s impact on developing regions of the globe, with the announcement of a new partnership with AXA Corporate Solutions on parametric weather insurance.

As Nigeria continues to grow its presence in the global agriculture market, officials from the country’s Government met in London recently to discuss a desire to increase the use of index-based insurance schemes for local smallholder farmers.

International Finance Corporation (IFC), part of the World Bank Group, is developing an index-based insurance product to protect banks in Indonesia that provide loans to individuals and micro, small and medium enterprises from losses following earthquakes and other disasters.

A new pilot scheme offering flood insurance to residents of a region of Bangladesh using a parametric product based on flood depths has been launched by a group of organisations including Oxfam and Swiss Re. The product aims to use alternative risk transfer techniques to protect poor residents of river basin areas of the country.