parametric trigger

Risk capital and reinsurance solutions broker Augment Risk believes that parametric reinsurance solutions can be a “beacon” in a challenging market environment, providing a valuable addition to the buyers alternative toolkit, alongside catastrophe bonds, industry-loss warranties (ILW’s) and retrocession.

Munich Re, one of the largest reinsurance companies in the world, has launched a new global unit focused on growing its share in parametric natural catastrophe risk transfer solutions, bringing together expertise from across the business to target this growing area of the market.

An innovative parametric insurance program has been taken across the globe to cover a South pacific coral reef in the Fiji archipelago, with broker WTW saying it will provide up to US $450,000 of cover for reef restoration and community assistance if cyclones hit.

Demonstrating its appetite to deliver parametric insurance and data-driven risk transfer solutions beyond natural catastrophe, weather and climate risks, specialist Descartes Underwriting has launched its first parametric cyber offering.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has completed a novel trade on a California water price index, executing a call spread option that can help parties hedge against adverse movements in the price of water.

Insurtech Floodbase, which acts as a data provider and reporting agent for parametric risk transfer arrangements, is set to integrate 24/7, all-weather synthetic aperture radar (SAR) data into its flood solution, enhancing the coverage and granularity which can make parametric flood insurance and risk transfer triggers more accurate.

The Bermuda Monetary Authority (BMA) has laid out its plans for 2024, with Chief Executive Officer (CEO) Craig Swan highlighting specific opportunities in parametric risk transfer for climate insurance.

Speaking at the World Economic Forum event in Davos, Switzerland this week, Rafal Modrzewski, CEO and Co-Founder of ICEYE explained the important role satellite technology and the data it can collect has for the global insurance and reinsurance market, as well as societal resilience.

FloodFlash, a flood risk focused insurtech company that offers an innovative sensor-based approach to parametric flood insurance, said that the current UK floods that have occurred after days of storms and heavy rainfall have seen waters rise to hit the parametric triggers for some of its policies.

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) made three payouts on parametric insurance policies to member governments from storms in the 2023 Atlantic hurricane season, taking the total it has paid out to almost US $266.8 million since its inception.