Parametric insurance news

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.

The CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility) has made a payout of US $4.67 million to the Government of Honduras after its parametric excess rainfall insurance policy was triggered following a severe event in November, taking CCRIF parametric payouts made for the current policy year to almost US $118 million.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has reported that it paid $20 million to clients that saw their parametric reinsurance arrangements triggered by hurricane Milton, with these payouts all made within 30 days of the storm’s landfall.

Having recently secured its debut catastrophe bond, the $100 million Maschpark Re Ltd. (Series 2024-1) parametric earthquake issuance, German re/insurance group Talanx has said that the protection augments its need for reinsurance and to cover earthquake risks in Chile as its business grows.

FloodFlash, a flood risk focused insurtech company that offers an innovative sensor-based approach to parametric flood insurance, has revealed paying a claim for a client in just over 10 hours after UK flooding from Storm Bert breached the parametric trigger for the policy.

The World Bank is working with four countries from the Organization of Eastern Caribbean States Commission (OECS), Dominica, Grenada, Saint Lucia, and Saint Vincent and the Grenadines, to strengthen their climate resilience and with three risk transfer options being explored, a catastrophe swap, catastrophe bonds, or securing more parametric insurance.

CelsiusPro AG, the Swiss headquartered weather index insurance and parametric risk transfer specialist, has launched ParameterPro 2.0, which is the latest iteration of its technology platform for brokers and the company says it can streamline parametric insurance structuring and modelling for them.

Talanx has now successfully secured the targeted $100 million of parametric earthquake protection from its debut catastrophe bond, as the $100 million of Maschpark Re Ltd. (Series 2024-1) notes have now been priced at the low-end of initial guidance.

According to sources, the price guidance for the debut Maschpark Re Ltd. (Series 2024-1) catastrophe bond issuance for sponsor Talanx has been narrowed towards the lower-half of the initial range that had been offered.

Ceres, a non-profit that leads a national coalition of investors, environmental organisations and other public interest groups working to address global sustainability challenges, has highlighted parametric risk transfer, catastrophe bonds and ILS as innovative tools to address increasing climate risks and build a more resilient and sustainable insurance sector.