Parametric insurance news

Industry loss warranties (ILWs) remain a useful and well-established instrument within the capital management toolbox of risk carriers, but do have their drawbacks, some of which can be mitigated or removed entirely by a parametric structure, according to Skyline Partners.

When Jamaica first ventured into the catastrophe bond market it was with the support of donor funding that paid the premiums for the 2021 issuance, but with its successful renewal issuance of the cat bond settled this week, it transpires that Jamaica has this time paid for the protection out of its own funds.

The Government of Mexico has now secured $175 million of parametric Pacific named storm disaster insurance protection from the capital markets through the IBRD CAR Mexico 2024 (Pacific) catastrophe bond issuance, which is 40% more than the initial target for this tranche of notes and will take Mexico’s overall cat bond cover to $595 million, […]

Plover Parametrics has launched as a specialty brokerage focused on leveraging advanced technology to build out new parametric insurance products and has announced the hiring of former Descartes employee Brendan Beeg and a successful raise of $5 million in venture funding to support the growth of the business.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has raised a $60 million Series B round, as it looks to scale parametric insurance in response to what it sees as increasing climate related risks, while also helping to make that risk into an investable asset class.

The Government of Mexico is looking to upsize its Pacific named storm protection from its latest tranche of World Bank and IBRD facilitated catastrophe bond notes, with now up to $175 million in parametric disaster insurance protection sought from the deal.

According to the African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and other entities in Africa, the ongoing severe drought across the southern African region is expected to trigger its parametric insurance policies for at least four countries.

The Caribbean island nation of Jamaica is “pleased” to have secured coverage from its second World Bank supported catastrophe bond, Finance Minister Dr. Nigel Clarke has said, also citing his countries gratitude for financial support from Hong Kong, presumably through its ILS Grant Scheme.

Broking giant Marsh has bundled its parametric risk transfer specialism under a new umbrella practice of Global Alternative Risk Solutions, which will be led by Christophe Letondot and also tasked with helping clients access ILS capital with the support of Guy Carpenter.

The Government of Jamaica’s new World Bank facilitated catastrophe bond issuance remains at its initial $150 million in size, while the notes issued under this IBRD CAR Jamaica 2024 cat bond are now expected to be priced at the upper-end of initial guidance, Artemis has learned.