Parametric insurance news

Hurricane Polo is rapidly intensifying off the southwestern coast of Mexico and the strengthening trend is expected to continue, while the track remains uncertain at this time, which has brought the $175 million IBRD CAR Mexico 2024 (Pacific) parametric catastrophe bond into focus this week.

The Bermuda Monetary Authority has confirmed that contracts under its proposed Parametric Special Purpose Insurer (PSPI) regulatory framework can be structured as reinsurance, derivatives, or swaps, so as long as the underlying risk transfer meets the applicable statutory and regulatory requirements.

As billions of dollars continue to flow into new infrastructure such as AI data centres, the re/insurance industry will be forced to rethink traditional approaches to risk modeling, according to Arbol’s Sid Jha, who emphasises that data-driven solutions will play a critical role in managing climate volatility and boosting resilience.

CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America has announced that it has expanded its coverage to US $1.8 billion for the current policy year, a 14.5% increase from the $1.57 billion the organisation reported in early June, showcasing that demand for parametric coverage significantly outpaced expectations.

Howden Re, the global reinsurance broker, has announced the launch of an International Alternative Solutions practice, which is set to combine structured reinsurance, analytics, parametric and capital markets insurance-linked securities (ILS) expertise to develop innovative risk and capital solutions for clients across international markets.

Parametric specialist Descartes Underwriting and Generali Global Corporate & Commercial (GC&C), the business of Generali Group that provides solutions and services to medium-large companies, have renewed their strategic partnership that sees the two firms develop parametric insurance solutions to actively respond to the evolving global risk landscape.

The National Commodity and Derivatives Exchange (NCDEX) has expanded its range of parametric weather derivative products, launching a futures contract to enable participants to hedge the financial exposure of rainfall extremes and variability in the city of Chennai and surrounding area.

The Southeast Asia Disaster Risk Insurance Facility (SEADRIF Insurance Company) has made payouts of USD 1.14 million to the Government of Lao PDR and the United Nations World Food Programme (WFP), after heavy rainfall and widespread flooding triggered both Lao PDR’s two-year parametric sovereign policy and WFP’s 2026 disaster resilience policy.

Kalshi, the prediction market platform, has entered into a strategic partnership with The Weather Company, a leading weather provider, to expand and support the growing weather hedging activity on its platform through provision of settlement data.

A new study co-authored by catastrophe modelling and climate analytics specialist Reask, has demonstrated how advanced downstream forecast analytics can eliminate basis risk in parametric insurance by funding pre-landfall protective actions before a hurricane strikes.