Reinsurance News
Parametric insurance news
Parametric insurance and parametric reinsurance are growth areas for the industry. We cover news on many forms of parametric risk transfer to provides our readers with insights into developments in the re/insurance market related to parametric triggers.
Parametric insurance utilises catastrophe event, weather, or other data parameters to define payout structures and triggers for contracts. It is considered a fast, pre-defined payout system, with payouts coming due when a specific, objective event occurs and a pre-defined parameter is reached, rather than assessing actual physical loss like traditional indemnity insurance.
This archive features our news on the use of parametric triggers to structure insurance or reinsurance protection, as well as discussion on the benefits of parametric triggers as transparent, fast-paying trigger mechanisms for providing parametric insurance and reinsurance coverage.
Swiss Re launches parametric tsunami derivative for Japan businesses
8th August 2018
Commercial risk transfer and insurance solutions provider Swiss Re Corporate Solutions, a division of the global reinsurance firm, has launched a parametric tsunami derivative solution for organisations based in Japan. The product provides a pre-agreed amount within 40 days after arrival based on the height of the tsunami, as recorded and ... Read the full article
Parametric insurtech FloodFlash secures $1.9m in seed funding
3rd August 2018
FoodFlash, an insurtech that offers parametric insurance solutions to previously un-insurable flood risks, has raised $1.9 million in seed funding from LocalGlobe, Pentech Ventures and InsurTech Gateway. FloodFlash leverages internet-connected water sensors to trigger a pre-agreed fixed sum immediately to a policyholder. An example of event-based insurance, settlement is made based on ... Read the full article
Assured Risk develops StormPeace parametric business cover
27th July 2018
Assured Risk Cover (ARC), a residential hurricane insurance start-up, has launched a new parametric commercial insurance policy for small businesses in Florida under its StormPeace brand name. The new policy will contain all the features of the existing StormPeace residential policy, with the addition of business interruption coverage regardless of physical ... Read the full article
Willis partners with MAR Fund on parametric reef insurance project
12th July 2018
Global re/insurance broker Willis Towers Watson has announced a partnership with the Mesoamerican Reef Fund to develop and implement an insurance model for reefs across seven sites in the four countries of the MAR Region: Mexico, Belize, Guatemala and Honduras. Through its Global Ecosystem Resilience Facility, Willis plans to develop parametric reef ... Read the full article
MiCRO launches new parametric microinsurance product in El Salvador
27th June 2018
The Microinsurance Catastrophe Risk Organisation (MiCRO), a reinsurance company established in Barbados, has launched ‘Produce Seguro’, a new index based insurance product in El Salvador that protects small businesses and low-income families against natural disasters. “Anyone who may be affected by a catastrophic weather or earthquake event will be able to get the ... Read the full article
Parametric re/insurance potential in commercial risks highlighted
21st June 2018
A new report from Airmic in collaboration with reinsurance giant Swiss Re's commercial insurance arm and insurance and reinsurance brokerage Marsh, highlights the potential for parametric re/insurance solutions to become more mainstream in the commercial space. Parametric insurance remains more common place in the alternative reinsurance, or insurance-linked securities (ILS) sector, ... Read the full article
Spring frost drives insurance demand among French winemakers: Meteo Protect
14th June 2018
Lloyd’s coverholder Meteo Protect has reported a dramatic increase in demand for parametric weather insurance among France’s winemakers following unusually cold temperatures and frost across Western Europe during 2017’s critical spring growing period. At the May 31st conclusion to Meteo Protect’s spring frost coverage, now in its second year offering, the ... Read the full article
Information and education critical to tackling U.S flood risk, says Swiss Re’s Junge
6th June 2018
Tackling the challenge of U.S flood risk will require re/insurers to focus on educating property owners while at the same time developing more detailed resources, such as flood maps and risk models, according to Swiss Re Senior Treaty Underwriter Matt Junge. Although floods cause around $15 billion of economic damage every ... Read the full article
Meteo Protect develops parametric solution following French floods
23rd April 2018
Parametric and weather index insurer, Meteo Protect has launched a new weather insurance product designed for river cruise boats and riverside businesses, which were adversely affected by the extreme precipitation and flooding in France in recent months. From December 2017 to February 2018, France experienced record-breaking levels of precipitation, which led ... Read the full article
New Paradigm Underwriters names Evan Bull as Executive Vice President
14th March 2018
New Paradigm Underwriters, creator of Hurricane PM Parametric Supplemental Hurricane Insurance, has announced the appointment of Evan Bull as Executive Vice President. 25-year insurance industry veteran Bull joins from a managing director role at Beecher Carlson where he head up business development, before that he was national property practice leader at Burns ... Read the full article
Swiss Re backs innovative coral reef insurance solution
12th March 2018
Global reinsurance giant Swiss Re has supported the development of an innovative new parametric insurance solution designed to help the conservation of the Mesoamerican Reef, which includes protecting the coral reef and beach sand against the impacts of major hurricanes. The new insurance solution was announced at the 2018 World Ocean Summit ... Read the full article
Pacific Catastrophe Risk Insurance Company increases reinsurance by 19%
22nd November 2017
The Pacific Catastrophe Risk Insurance Company (PCRIC) secured increased reinsurance coverage of $45 million for the 2017-2018 cyclone season, providing five participating Pacific Island Countries (PICs) with parametric insurance protection for climate and seismic risks. In its sixth season, the PCRIC has secured protection of $45 million for the Cook Islands, ... Read the full article
CCRIF SPC to payout $7mn for Trinidad & Tobago heavy rainfall
2nd November 2017
The Caribbean Catastrophe Risk Facility, CCRIF SPC, will make a US$7 million payout to Trinidad & Tobago on its Excess Rainfall (XSR) policy for heavy late October rainfall. Local officials and technocrats in Trinidad have referred to the recent rainfall, which caused widespread flooding, as "unprecedented." The Trinidad & Tobago government purchased ... Read the full article
Mexican government backed £14mn grant approved for Caribbean risk facility
2nd November 2017
A Mexican government backed $14 million grant has been approved by the Caribbean Development Bank (CDB) to provide the Caribbean Catastrophe Risk Insurance Facility, (CCRIF SPC) member countries with enhanced insurance cover. The grant provides cover that protects against tropical cyclone, earthquake and excess rainfall risks as well as contributes to ... Read the full article
Re/insurance solutions evolve to cover intangible corporate assets: Swiss Re
16th October 2017
Re/insurance product development and innovation around data and data analytics have expanded the scope of solutions from tangible to intangible assets, to cover a wider range of threats and improve corporate risk management, according to Swiss Re's latest sigma study. Companies are increasingly using novel insurance solutions to protect earnings, reduce ... Read the full article
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