Parametric reinsurance news

The Lagos State government has contracted a parametric flood-risk insurance policy in the Nigerian insurance market, which is designed to protect up to 4 million vulnerable people, providing up to USD 7.5 million for flood response and recovery.

Algorithmic Insurance Services, Inc., the wholesale broker trading as LIRG, has secured a $15 million quota-share reinsurance arrangement for New York-based managing general agent DLT Alert, underpinning the launch of a new suite of embedded parametric cyber warranty products aimed at cybersecurity solution providers.

As the insurance-linked securities (ILS) market continues to expand, Augment Risk is positioning parametric triggers not merely as a peripheral alternative, but as a central, diversifying asset class defined by its structural independence from traditional indemnity-based retrocession, a shift the firm believes is fundamental to unlocking the next phase of third-party capital allocation.

NormanMax, the expansive US based parametric insurance and reinsurance group with a pure-parametric syndicate at Lloyd’s, has hired Alvaro Espinel Pardo as a Vice President, where he will lead the firm’s strategy and development in Latin and South America.

Broker Guy Carpenter has announced the appointment of Ian Bartholomew PhD, Co-Founder and former Chief Underwriting Officer of parametric flood insurer, FloodFlash as Global Head of Parametric Advisory, effective June 1st, 2026.

A new study authored by Hang Gao, et al published in The Geneva Papers on Risk and Insurance has highlighted how basis risk is a manageable and structural feature of parametric triggers, decoupling it from financial impacts on insurers or policyholders to focus on its fundamental properties.

The Government of Jamaica has announced its intention to renew its Caribbean Catastrophe Risk Insurance Facility (CCRIF-SPC) parametric risk transfer coverage in May 2026. However, there has been no confirmation regarding the potential for any renewal of its World Bank-facilitated catastrophe bond.

As the insurance and reinsurance market responds to the growing risk capacity needs of the digital infrastructure and data centre build-out, collateralized insurance-linked securities and parametric risk transfer are playing a role in covering exposures such as correlated power grid events, according to Guy Carpenter’s Jeremy Goodman.

In response to the extensive damage caused by tropical cyclones Fytia and Gezaniver, which disrupted essential services and impacted over half a million people across Madagascar, $29 million has been deployed for recovery efforts through a blend of parametric financing solutions facilitated by the African Risk Capacity (ARC) and its partner institutions.

The main four parametric natural disaster insurance risk pools have committed to a unique collaboration, which will see them explore the creation of a joint risk finance and reinsurance platform.