Parametric insurance news

While the focus for many is on what is still potential tropical cyclone nine and soon to become storm Helene on the Atlantic side, off the Pacific coast of Mexico hurricane John rapidly intensified and made landfall as a Category 3 storm which has resulted in enquiries from catastrophe bond investors.

Analysis from broking group Aon and Parametrix, a specialist in parametric cloud downtime cyber risk transfer, shows that it is possible to gain diversification within cyber portfolios that have cloud outage risk concentrations, with geography one way to achieve that.

Some 27 years since I had my introduction to parametric triggers, one factor is still cited as holding back broader adoption, the issue of basis risk.

Weather Risk Management Services (WRMS), a specialist Indian company that has created a successful business in offering agriculture and risk management services, including parametric or index-based climate and catastrophe insurance solutions, is targeting expansion in Latin America.

CelsiusPro and New Zealand based primary insurance group Tower continue their partnership on a parametric Pacific cyclone insurance product, with an upgraded technology platform now supporting product distribution and administration of the JTWC data powered parametric insurance solution.

Having recently raised new funding to expand its offering, the Demex Group, a risk analytics and intelligence company that facilitates climate and catastrophe peril parametric stop-loss reinsurance protection, has announced a new Advisory Board with three well-know industry executives joining it.

Eric Andersen, President of Aon plc, spoke at an event at the Monte Carlo Rendez-Vous hosted by Guernsey Finance yesterday and explained that the brokers’ repositioning in reinsurance and risk transfer, under Risk Capital, has enabled it to better respond to the global request for capital and deliver on risk transfer innovation.

Speedwell Climate, a leading provider of weather, catastrophe and climate data, indices and settlement services, has been acquired by Vaisala, a global company focused on provision of measurement instruments and intelligence for climate action.

Global reinsurance company Hannover Re said today at the Monte Carlo Rendez-Vous event that innovation remains on the agenda even while demand for traditional reinsurance remains high, citing examples of parametric risk transfer and its recent cloud outage cyber catastrophe bond.

There is rising interest in catastrophe bonds from potential sponsors and the parametric risk transfer space is another area seeing growing momentum, according to Mike Van Slooten, Head of Business Intelligence at Aon’s Reinsurance Solutions.