Parametric insurance news

Hurricane Lisa’s landfall in Belize on November 2nd has triggered an innovative parametric insurance product that provides a form of protection to fund repairs following storm damage to the largest barrier reef in the Atlantic Ocean.

Parametric insurance products are slowly gaining momentum in Africa, but according to Lesley Ndlovu, CEO of the African Risk Capacity (ARC) Group’s insurer, Arc Ltd., more countries need to embrace parametric risk transfer, especially as Africa tries to fight the effects of climate change.

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) has made US $15.2 million in pay-outs to members after hydro-meteorological events that took place during the 2022 hurricane season.

K2 Parametric, a parametric insurance managing general agency (MGA) launched last year by K2 Insurance Services, LLC, has partnered with global specialty insurance and reinsurance group, Chaucer, to boost its line size capability for a new parametric solution via the London market.

The Caribbean island nation of Barbados is one of the first in the world we’ve heard of to embed a parametric natural catastrophe event trigger within a sovereign bond issuance, with the occurrence of a natural disaster able to trigger a deferral of payments to holders of the dollar-denominated bond.

Given the challenges faced in an increasingly volatile and turbulent world, insurance and risk finance are key tools that can help to shift the balance of risk, while insurance-linked securities (ILS) can “securitize resilience”, according to United Nations Development Programme (UNDP) representatives.

The second session at our Artemis London 2022 conference on September 6th featured a panel discussion titled “Filling the Gaps”, where participants discussed climate and disaster risk, as well as parametric catastrophe bonds.

Reinsurance broker Gallagher Re has announced an interesting win, in being selected by Senegal’s Public Solidarity Fund (FSN, Fonds de Solidarité Nationale) to develop a comprehensive risk financing strategy, covering climate risk and food security.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has made another key hire, bringing onboard Brad Livingston, an executive with significant insurance-linked securities (ILS) market experience, as its new Head of Risk Capital Solutions.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has announced another key hire, appointing Jeffrey Khoo to lead its Asia Pacific expansion plans.