Parametric insurance news

The Dominican Republic has become the first country in Latin America and the Caribbean to fully integrate parametric insurance into its adaptive social protection system, utilising a solution developed by the Tripartite Agreement, a public-private partnership between the Insurance Development Forum (IDF), UNDP, and Germany’s BMZ via the InsuResilience Solutions Fund (ISF).

Pre-arranged financing through macro-level disaster risk instruments, including catastrophe bonds and parametric insurance, are deemed a practical, scalable solution that can deliver financial support for early action to support recovery and resilience, the United Nations World Food Programme (WFP) has explained.

The Natural Disaster Fund (NDF), a largely parametric risk transfer focused public-private partnership funded by UK and German governmental entities and managed by Global Parametrics (part of CelsiusPro Group) has signed up a major new capacity provider in global re/insurer MS Amlin.

Liberty Mutual Reinsurance (LM Re), the reinsurance arm of the insurance group, and Safehub, a provider of seismic sensor and risk management technology, have partnered to provide the Mexican federal government with a new nationwide parametric earthquake and volcanic risk insurance solution.

Descartes Underwriting, the parametric risk transfer specialist, and OAK Global, the specialist Lloyd’s underwriting company, has announced Descartes’ approval as a Coverholder at Lloyd’s, which will see the firm underwrite parametric policies through OAK Global’s Syndicate 2843, bringing new risks to the London market.

The Board of the World Bank has approved a new $400 million program that aims to boost Morocco’s resilience against climate, disaster, and cyber risks, with catastrophe bonds and other forms of insurance risk transfer including parametric triggers mooted as part of the program outcomes.

Liberty and ICEYE, a provider of satellite data and services to inform decision-making and analysis, have partnered together to launch a new parametric wildfire insurance solution that uses satellite data to assess building-level damage.

Descartes Underwriting, a specialist underwriter of parametric risk transfer opportunities, has partnered with Nextpower to launch an integrated parametric insurance solution that uses site-level wind data from Nextpower meteorological stations to protect solar power plant operators against the economic impact of straight-line wind (SLW) events.

The government of Mexico has now finalised its main insurance protection for natural disasters and severe weather events for the coming year, doubling the size of its parametric catastrophe insurance arrangement to around US $575 million for 2026 into 2027.

Isaac Anthony, CEO of CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America, has announced that the organisation grew its coverage by 9% to US $1.57 billion, and introduced new members ahead of the 2026 Atlantic hurricane season.