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.
Guy Carpenter proposes parametric solution for explosive volcanic eruptions
14th May 2019
Reinsurance broker Guy Carpenter has conceptualised and designed a parametric risk transfer solution that looks to mitigate losses to building structures as a result of large, ash fall-producing volcanic eruptions. In a recent article, Catastrophe Risk Analyst at Guy Carpenter, Delioma Oramas Dorta and Guillermo Franco, Managing Director & Global Head ... Read the full article
Swiss Re partners with Falls Lake & Arrowhead on parametric quake solution
11th March 2019
Global reinsurance giant Swiss Re has partnered with primary insurer Falls Lake and managing general agent Arrowhead for the launch of Quake Assist, a parametric insurance solution providing Business Interruption (BI) cover within California, even if no damage occurs to the insured’s building. “What makes this product unique is the fact ... Read the full article
Sompo and Germany’s SV launch parametric agriculture solution
31st January 2019
Bermuda-based property and casualty insurer and reinsurer, Sompo International Holdings Ltd., has announced the introduction of a new innovative agriculture insurance product for the German market, in partnership with German insurer SV SparkassenVersicherung (SV). The new solution, called SV ErnteIndex, has been tailored to the agricultural sector and offers parametric protection against crop ... Read the full article
World Bank renews Philippines catastrophe cover at $390mn
14th January 2019
The World Bank has announced the renewal of a parametric insurance program that helps the Philippines better respond to losses from natural disasters, at an increased size of $390 million. The renewal is almost double the size of the $206 million of insurance coverage secured under the 2017 policy, and provides ... Read the full article
Swiss Re Corporate Solutions introduces parametric water-level insurance
7th January 2019
Swiss Re Corporate Solutions, a division of global reinsurer Swiss Re, has announced the launch of FLOW, a parametric water-level insurance solution. Designed to protect companies in Europe from the financial impact of high or low river water levels - such as lost revenue due to business interruption or increased costs ... Read the full article
Global economy has become less resilient, but insurtech can help: Swiss Re
4th January 2019
The global economy has become less resilient to shocks in the ten years following the financial crisis, but new public-private partnerships, in combination with the use and development of new technological capabilities, can help to strengthen it, according to reinsurance giant Swiss Re. In the company’s latest sigma report, titled ‘Global ... Read the full article
The Philippines secures $386m parametric insurance policy
20th December 2018
With assistance from the World Bank, the Philippines’ Department of Finance has announced the successful placement of a parametric insurance policy that provides up to US$386 million of cover to 25 high-risk provinces throughout the country’s eastern seaboard. This appears to be a renewal of an arrangement made last year ... Read the full article
New Paradigm receives investment from TransRe
12th November 2018
New Paradigm Group, a Florida-based developer of parametric insurance and risk transfer solutions, has announced that it has received an investment from global reinsurer TransRe, the reinsurance arm of Alleghany Corporation. New Paradigm is reportedly to use the proceeds to expand its proprietary parametric data platform and also to enhance its ... Read the full article
African Development Bank to launch disaster risk financing programme
30th October 2018
The African Development Bank (AfDB) has announced the launch of its first climate risk management initiative, called the Africa Disaster Risks Financing (ADRiFi) Programme. The comprehensive programme, which will initially run from 2019 to 2023, includes the provision of disaster risk insurance cover for poor communities in regional member countries, and ... Read the full article
Parametric insurance opportunity as German waterways face disruption
26th October 2018
Shipping companies in Germany could look to insurers for a new kind of parametric coverage following an unprecedented drop in the water levels of some rivers, caused by months of scarce rainfall and hot weather. German publication The Local reported that the docks at Cologne’s main port haven’t seen any new ... Read the full article
Swiss Re Corporate Solutions launches parametric haze solution
5th October 2018
Swiss Re Corporate Solutions, the commercial insurance arm of the Swiss Re Group, has announced the launch of HazeShield, a standalone haze insurance solution for Singaporean businesses. The parametric-based solution leverages data from Singapore's National Environment Agency (NEA) Pollutant Standard Index (PSI), to allow the triggering of a pre-agreed payout amount ... Read the full article
Blue Marble & Nespresso launch parametric insurance pilot for Colombian farmers
3rd October 2018
Blue Marble Microinsurance - a consortium of nine companies including Zurich, AIG, Aspen, and Hamilton - has collaborated with Nespresso on the launch of a pilot weather index insurance program for smallholder coffee farmers in Colombia. It has commenced with 1,975 farmer participants across 5,724 hectares belonging to the farmers of ... Read the full article
Parametric InsurTech Jumpstart launches with text-powered earthquake coverage
3rd October 2018
Jumpstart, a California-based InsurTech start-up, has officially launched with a new type of natural disaster insurance product that provides parametric coverage and text message driven payments for earthquake risks. The company uses technology to track real-time data and provide automatic payments initiated by text message following an earthquake of pre-specified intensity, ... Read the full article
Parametric drought insurance product to launch in Senegal
4th September 2018
The Start Network, an international network of Non-Governmental Organisations (NGO), has announced the launch of a new parametric insurance product designed to protect individuals in Senegal affected by drought. The product, due to be introduced for the 2018-2019 agricultural season, will trigger payouts when rainfall levels fall below a certain threshold. ... Read the full article
MetLife develops new claims-free blockchain health insurance product
29th August 2018
MetLife Asia’s Singapore-based innovation centre, LumenLab, has begun testing a new insurance solution that uses blockchain technology to trigger automatic payouts upon diagnosis of certain health conditions, without the need to make a claim. The experimental product, called Vitana, is currently designed to offer pregnant women financial protection in case of ... Read the full article
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