Parametric insurance news

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS) and reinsurance investment manager, has launched its first parametric ILS fund, working with Lumyna Investments for infrastructure and distribution, and parametric specialist Descartes Underwriting alongside Generali’s Global Corporate & Commercial arm for origination.

With a widening crisis protection gap evident around the world there is a need for a transformational expansion in the use of insurance and reinsurance mechanisms to transfer risks to the capital markets, according to a report from the High-Level Panel on Closing the Crisis Protection Gap.

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.

Descartes Underwriting, a data-driven risk transfer specialist managing general agency (MGA) and insurer with a parametric focus, has launched what it calls the world’s most advanced parametric insurance product to protect utility-scale solar farms in the United States against damage from tornadoes.

Greg Case, CEO and Andy Marcell, CEO of Risk Capital at insurance and reinsurance broker Aon, have highlighted that innovation and new alternative  sources of capital are required to protect communities and assets, in bridging the gap between economic and insured catastrophe and climate losses.

Real-time flood forecasting tech firm Previsico has partnered with specialist parametric MGA and insurer Descartes Underwriting to deliver a flood insurance product for UK commercial firms that features a trigger based on sensor data, warnings and forecasts of water depths.

The California Earthquake Authority (CEA) is discussing the need for either a pre-funded subsequent or second-event funding tower (with risk transfer and reinsurance perhaps a part of it), or the infrastructure for one, that would support its functions after a significant earthquake loss that depletes its claims paying ability.

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.

Lockton, the independent insurance and reinsurance broking group, has announced the formal launch of a new Global Parametric Insurance Practice, bringing together its parametric risk transfer expertise under one specialist unit.

Reinsurance broker Guy Carpenter has begun a research project into the use of reciprocal exchanges for delivering parametric catastrophe insurance solutions, to identify whether the structure is a viable one for community-based coverage initiatives.