Parametric insurance news

Africa Specialty Risks, a pan-African focused reinsurance group, has announced the launch of a new parametric underwriting division with two key hires joining the company from recent roles at QOMPLX:UNDERWRITING.

Global reinsurance firm Hannover Re and broker Willis Towers Watson are representing the Insurance Development Forum (IDF) in a project to develop natural catastrophe and climate related risk transfer solutions for the City of Medellín, Colombia.

As insurers and reinsurers continue to advance their data analytics capabilities, parametric structures will increasingly be leveraged for more traditional classes of business, according to James Harrison, UKI Head of Insurance at global data and analytics firm, Dun & Bradstreet (D&B).

Vesttoo and Artemis have partnered to host a live webcast on May 25th 2021 where we will discuss and explain opportunities to hedge the next pandemic, using parametric risk transfer, facilitated through the use of data and technology, as well as capacity from the capital markets.

The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and now other entities in Africa, is targeting adding Somalia to its risk pool, signing an MoU with the Government to help it work through the onboarding process.

Interest in parametric risk transfer and insurance is on the rise as the immediacy and availability of data improves and new types of market participants enter the fray, suggesting growth is on the horizon, according to industry experts.

Having reported EUR 3.5 billion of losses related to the COVID-19 pandemic for 2020 and now revealing an expectation of another EUR 600 million to be booked in 2021, Munich Re’s CEO Joachim Wenning today urged industry and governments to make progress on a public-private model for pandemics and other systemic risks.

As interest in and use of parametric forms of insurance and reinsurance risk transfer continues to increase, broker Willis Towers Watson notes that prices for coverage have been on the rise in the United States, but so too is available parametric capacity.

In some situations, parametric insurance and risk transfer arrangements can benefit the protection buyer by providing coverage that wouldn’t have been available under a traditional indemnity insurance policy. You can learn about this and more in our upcoming live webcast (register here).

The CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility), a parametric focused risk pooling and transfer facility for the Caribbean and Central America, is targeting further expansion in terms of its scope, as well as in terms of the range of risk transfer products it offers and to whom.