Parametric insurance news

In response to the extensive damage caused by tropical cyclones Fytia and Gezaniver, which disrupted essential services and impacted over half a million people across Madagascar, $29 million has been deployed for recovery efforts through a blend of parametric financing solutions facilitated by the African Risk Capacity (ARC) and its partner institutions.

The main four parametric natural disaster insurance risk pools have committed to a unique collaboration, which will see them explore the creation of a joint risk finance and reinsurance platform.

The International Financial Services Centres Authority (IFSCA) will be sending proposals to the Government of India regarding the regulator’s suggested framework that would allow re/insurers to set up reinsurance sidecars in a special purpose insurance (SPI) structure, Chairman K. Rajaraman announced at the Global Conference of Actuaries 2026 earlier this week.

FERMA, the Federation of European Risk Management Associations has urged the European Commission to adopt a collaborative approach to the climate resilience framework it plans to introduce later this year, calling for the use of catastrophe bonds, insurance-linked securities (ILS) and parametric products.

A recent report from Global Parametrics has acknowledged that catastrophe bonds can be part of the solution to risk financing for humanitarian organisations. The firm suggests that for humanitarian organisations requiring substantial capacity, multi-year cat bonds, as well as parametric products may secure greater limits and provide longer-term protection than other financial instruments, but only as […]

The Asian Development Bank (ADB) is aiming to issue its first catastrophe bond in the coming months, with the parametric deal expected to be around $120 million – $150 million in size, designed to protect both the Kyrgyz Republic and Tajikistan against earthquake and flood risks over a three-year term.

Augment Risk, the risk capital and reinsurance solutions broking firm, has expanded its Latin American platform by adding specialist weather parametric and structured weather risk transfer capabilities.

The reinsurance market has seen an increase in risk capacity from dedicated parametric underwriters and capital providers, according to reinsurance broker Gallagher Re, who outlined that as traditional reinsurance pricing begins to soften, parametric solutions remain a “competitive option” offering cedants a practical addition to their volatility protection toolkit.

Global climate risk solutions platform Arbol and Pollen Systems have teamed up to bring to market a first-of-its-kind product that combines parametric insurance with multiple real-time data sources, that are set to address long-standing challenges in agricultural and climate risk coverage.

In the increasingly volatile world of catastrophe risk, the primary hurdle for third-party capital has rarely been the risk itself, but rather the tail; the years-long process of loss adjustment and trapped capital that follows a major event. However, CelsiusPro is making the case that parametric insurance offers a cleaner alternative for institutional investors, according […]