Parametric insurance news

Global insurance and reinsurance broker Aon has completed a hurricane and earthquake parametric insurance program for the Government of Puerto Rico, designed to lower the region’s insurance obligation to the U.S. Federal Emergency Management Agency (FEMA).

Stable, a technology company that has built an impressive business on the back of its index-based platform for commodity hedging, is to expand its scope further into parametric insurance and has launched a Bermuda domiciled Class 3A insurer to help it share in the underwriting economics.

Global Parametrics, the parametric and index-based disaster risk transfer company, has partnered with broking group Howden to deliver an expansion to its parametric insurance scheme with One Acre Fund for smallholder farmers in Africa.

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has announced a further US $4.7 million in funding from the European Union which will help to subsidise the parametric disaster insurance of its member countries through the 2023 policy year.

Parametric insurance solutions continue to be more broadly adopted, but the technology behind their triggers is also critical and solutions are developing fast, Callum Higgins from Moody’s RMS and Martin Hotz from Swiss Re Corporate Solutions explained in a recent video interview.

Kettle, the reinsurance focused deep-learning and artificial intelligence (AI) MGA, has partnered with Reask, provider of catastrophe modelling, climate analytics and data using machine learning techniques and artificial intelligence, to help it expand its offering to include US parametric hurricane reinsurance.

The notes from the Acorn Re Ltd. (Series 2023-1) parametric earthquake catastrophe bond transaction have now been priced and in the end will only provide its sponsor $150 million in protection, so falling short of its upper-target, with pricing seeming to be prioritised.

The World Bank Group said today that it intends to build on its already available catastrophe insurance solutions, such as catastrophe bonds, to make access to disaster risk financing without adding debt a reality for member countries.

European and global insurance giant Generali is formalising the structure of a Parametrics practice within its Global Corporate & Commercial (GC&C) arm, naming David Weber as Head of Parametrics and planning to develop parametric risk transfer opportunities across the group.

The recently launched and still in the market Acorn Re Ltd. (Series 2023-1) parametric earthquake catastrophe bond transaction has had its target lifted to now as much as $175 million, while at the same time the pricing has been slashed.