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.
Consider parametric solutions for the more intangible losses: GC’s Franco
22nd November 2019
While parametric insurance solutions provide rapid payout post-event, offering welcomed transactional speed and transparency, risk transfer mechanisms that are structured this way might be best-suited to covering direct and well-defined physical damage, according to Guillermo Franco, Global Head of Cat Risk Research at reinsurance broker Guy Carpenter. Under a parametric insurance ... Read the full article
Côte d’Ivoire receives $745k ARC payout after rainfall deficits
12th November 2019
The African Risk Capacity Insurance Limited, a financial affiliate of provider of parametric sovereign disaster risk insurance to African nations, African Risk Capacity (ARC), has paid out $745,000 to the Government of Côte d’Ivoire after rainfall deficits in the 2019 agricultural season. In September of this year, ARC's parametric tool, Africa ... Read the full article
CCRIF SPC adds Guatemala to Facility
17th October 2019
The CCRIF SPC (formerly called the Caribbean Catastrophe Risk Insurance Facility) has added the Government of Guatemala to the Facility, taking the total number of member countries to 22. After the signing of a Memorandum of Understanding (MoU) with the Council of Ministers of Finance of Central America, Panama and the ... Read the full article
Lloyd’s announces new parametric solution targeting hotel profit protection
24th September 2019
The specialist Lloyd's of London insurance and reinsurance marketplace has announced the launch of the first policy developed by Lloyd's Product Innovation Facility, a parametric solution targeting the hotel industry. The Lloyd's Product Innovation Facility was launched in June of this year to accelerate the development of re/insurance solutions for new ... Read the full article
Hurricane Dorian triggers $11mn CCRIF payout to the Bahamas
8th September 2019
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) will pay the Bahamas almost US $11 million due to the impact of Hurricane Dorian, which hit the region last week as a Category 5 storm. Dorian made landfall in the Bahamas on September 1 and stalled over the Abaco Islands and Grand Bahama ... Read the full article
Meteo Protect launches open insurance API for parametric cover
30th August 2019
Paris-based Lloyd’s coverholder Meteo Protect has announced the launch of an open insurance platform designed to enable insurers and startups worldwide to launch their own parametric insurance programs. Leveraging Lloyd’s insurance and reinsurance licenses globally, ParametricAPI provides direct access to 300 pre-configured parametric or index products designed for weather-related risks. The products ... Read the full article
Manulife partners with insurtech Blink on parametric flight insurance
27th August 2019
Canadian multinational insurer Manulife has signed an agreement that will see a suite of parametric travel disruption insurance solutions, provided by travel insurtech Blink, to its customers. Blink's solutions offer a real-time service designed to ease the stress of a flight delay or cancellation by providing instant payment when a flight ... Read the full article
Lloyd’s extols customer benefit of parametric insurance & smart contracts
11th July 2019
New reports by insurance and reinsurance marketplace Lloyd’s of London has endorsed parametric insurance and smart contracts as a way to help re/insurers offer customers better products and services. Lloyd’s acknowledged that parametric policies offer insurers more scope to design products for risks that could otherwise be uninsurable or underinsured. Parametric policies ... Read the full article
DFID & Global Parametrics to support Red Cross volcano cat bond
5th July 2019
The UK Government’s Department for International Development (DFID) and Global Parametrics have agreed in principal to support the world’s first pure-volcano catastrophe bond, launched by the Danish Red Cross. Global Parametrics, a parametric and index-based risk transfer startup backed by the UK and German governments, advised the DFID’s Natural Disaster Fund ... Read the full article
JBA & insurtech Floodflash create parametric flood policy
27th June 2019
Global flood risk modeller JBA Risk Management has partnered with insurtech firm Floodflash to create a UK parametric flood insurance policy. The new product, which JBA and Floodflash claim is an industry first, will provide bespoke insurance for policyholders in frequently flooded areas who have traditionally struggled to obtain cover. It will ... Read the full article
New Paradigm to host parametric re/insurance conference in 2020
21st June 2019
New Paradigm Group, the Florida-based developer of parametric insurance and risk transfer solutions, is due to host its first annual conference on parametric re/insurance in Miami Florida next year. Set for April 2020, the New Paradigm Global Parametric Insurance and Reinsurance Conference will be a forum for learning “how parametric insurance ... Read the full article
AXA Climate to offer parametric insurance for hail storms
5th June 2019
AXA Climate, the specialist parametric risk transfer division of AXA, has announced the launch of a new parametric coverage that aims to protect businesses from hail losses. The product, called Hail Protection, is reportedly the first of its kind and has already been rolled out as a pilot product in Colorado, ... Read the full article
Tremor places programmatic swap deal for parametric cat risk
21st May 2019
Tremor Technologies, the programmatic risk transfer platform, has priced and placed the first ever programmatic parametric swap transaction in insurance form. The insurtech start-up has already priced and placed a number of catastrophe reinsurance programs beginning at the end of 2018, but has moved into new territory with this latest deal. Tremor ... Read the full article
Clyde & Co develops smart contract for parametric insurance
16th May 2019
Global law firm Clyde & Co has launched a new smart contract for parametric insurance, which uses software and data sources to automatically calculate claims obligations and other factors. The contract, which is available through Clyde & Co’s smart contract consultancy, Clyde Code, is the first of its kind, according the ... Read the full article
AXA unveils rebranding of parametric insurance unit to AXA Climate
16th May 2019
Global re/insurer AXA has rebranded its specialist parametric risk transfer division from AXA Global Parametrics to AXA Climate, and has also announced a number of new additions to its team. Initially launched in 2017, the rebranded AXA Climate unit looks to provide clients with parametric risk transfer solutions for climate and ... Read the full article
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