parametric trigger

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.

FERMA, the Federation of European Risk Management Associations has urged the European Commission to adopt a collaborative approach to the climate resilience framework it plans to introduce later this year, calling for the use of catastrophe bonds, insurance-linked securities (ILS) and parametric products.

A recent report from Global Parametrics has acknowledged that catastrophe bonds can be part of the solution to risk financing for humanitarian organisations. The firm suggests that for humanitarian organisations requiring substantial capacity, multi-year cat bonds, as well as parametric products may secure greater limits and provide longer-term protection than other financial instruments, but only as […]