Parametric reinsurance news

The Bermuda Monetary Authority has confirmed that contracts under its proposed Parametric Special Purpose Insurer (PSPI) regulatory framework can be structured as reinsurance, derivatives, or swaps, so as long as the underlying risk transfer meets the applicable statutory and regulatory requirements.

As billions of dollars continue to flow into new infrastructure such as AI data centres, the re/insurance industry will be forced to rethink traditional approaches to risk modeling, according to Arbol’s Sid Jha, who emphasises that data-driven solutions will play a critical role in managing climate volatility and boosting resilience.

CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America has announced that it has expanded its coverage to US $1.8 billion for the current policy year, a 14.5% increase from the $1.57 billion the organisation reported in early June, showcasing that demand for parametric coverage significantly outpaced expectations.

Howden Re, the global reinsurance broker, has announced the launch of an International Alternative Solutions practice, which is set to combine structured reinsurance, analytics, parametric and capital markets insurance-linked securities (ILS) expertise to develop innovative risk and capital solutions for clients across international markets.

Parametric specialist Descartes Underwriting and Generali Global Corporate & Commercial (GC&C), the business of Generali Group that provides solutions and services to medium-large companies, have renewed their strategic partnership that sees the two firms develop parametric insurance solutions to actively respond to the evolving global risk landscape.

The Southeast Asia Disaster Risk Insurance Facility (SEADRIF Insurance Company) has made payouts of USD 1.14 million to the Government of Lao PDR and the United Nations World Food Programme (WFP), after heavy rainfall and widespread flooding triggered both Lao PDR’s two-year parametric sovereign policy and WFP’s 2026 disaster resilience policy.

The Nature Conservancy’s (TNC) Hawaiʻi parametric coral reef insurance policy will pay for damage assessment and reef repairs for the first time since it purchased the United States’ first such policy four years ago, following recent impacts from Hurricane Lala which brought dangerous flooding, strong winds and major power outages across the state.

Given that both the intensity and frequency of severe convective storm (SCS) events continue to steadily rise, Descartes Underwriting has indicated that the use of highly-responsive parametric solutions can help address aggregated SCS exposure.

The Inter-American Development Bank (IDB) has successfully arranged its first sovereign parametric catastrophe swap transaction, securing $20 million of hurricane risk transfer for Belize, underwritten by global reinsurance firm Swiss Re.

Global insurer AIG has expanded its cyber offering with the launch of a new parametric cloud outage solution developed in partnership with Parametrix, a provider of digital infrastructure insurance solutions.