index based insurance

The European Investment Bank (EIB), through its development arm EIB Global, is issuing a grant of up to €4 million to the United Nations World Food Programme (WFP), which will be used to support the development and rollout of parametric insurance products to protect smallholder farmers in Ethiopia.

Steel City Re is the world’s only provider of parametric reputation insurance offerings, leveraging a reputational value index that delivers more stable and higher returns for reinsurers and insurance-linked securities (ILS) investors, according to co-founder and CEO Nir Kossovsky.

Augment Risk, the risk capital and reinsurance solutions broking firm, has announced the hiring of Alejandro Solorzano from XS Global, who joins the company to help it expand its parametric risk transfer offering for the Latin America region.

With climate change concerns on the rise for businesses around the world, a new report from CME Group has noted that average trading volumes for weather derivatives are seeing a boost in interest.

Weather Risk Management Services (WRMS), a specialist Indian company that has created a successful business in offering agriculture and risk management services, including parametric or index-based climate and catastrophe insurance solutions, is targeting expansion in Latin America.

Risk capital and reinsurance solutions broker Augment Risk has announced the launch of a Parametric risk transfer division which will be led by former Inver Re and Aon weather and parametrics specialist Kurt Cripps.

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.