Diversification opportunities for parametric insurers – The Parametric Post

Diversification opportunities for parametric insurers – The Parametric Post

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The InsTech perspective... diversification opportunities for parametric insurers

Whilst parametric insurance solutions are now available for all sorts of risks across the world, there are still a few uses of parametric risk transfer that dwarf the rest of the market by premium volume. The largest parametric catastrophe insurance portfolios in the market have historically been dominated by North American hurricane and earthquake risk, with a few other hotspots such as earthquake coverage in Japan.

A highly active Atlantic hurricane season and a quake in the wrong place could have a huge impact on the profitability of insurers’ parametric books, while many are already highly exposed to these risks from underwriting conventional property insurance. Now, however, we see more opportunities for parametric insurers to diversify their underwriting across every continent.

In this week’s Parametric Post, new parametric schemes are announced in Mozambique and Malawi, while a reinsurer puts capacity behind an MGA to underwrite more parametric reinsurance across Africa. Berkshire Hathaway Specialty Insurance expands its parametric coverage to wildfire and plans to grow its parametric underwriting outside North America. Meanwhile, a large parametric policy is placed to cover risks in Turkey, typhoon coverage is launched in Vietnam and pay-outs prove parametric works in Japan, Fiji and Brazil.

Managing weather-related business volatility

Weather ? Business interruption ? InsTech article

Changes in the weather can significantly disrupt demand and operations for companies in sectors such as energy, construction and events, even if they cause little or no physical damage. Our latest article discusses how more organisations are choosing parametric insurance to manage their exposure to variability in the weather.

Latest parametric opportunities

Are you an insurer, MGA or broker with capacity to deploy for parametric insurance?

We know organisations seeking:

  • $20 million of crop insurance in India, May-Dec 2024
  • $100 million of insurance for Philippines typhoon, Apr-Dec 2024

Can you offer coverage to any of these organisations? Email [email protected] to learn more.

Do you represent an organisation looking for parametric insurance? The Parametric Post reaches parametric specialists across the global (re)insurance market. Reach out at [email protected] to talk about listing your need.

We are not a broker. InsTech, in partnership with ParaRisk (a joint initiative by 20 Twenty Search and Cerchia), makes paid introductions across the parametric insurance market, including brokers, (re)insurers, MGAs and data providers, to help facilitate transactions and grow the market for everyone.

In the news...

Miller Insurance launches parametric team

UK

London Market broker Miller Insurance has launched a dedicated parametric team. The team is led by Alice Glenister, who was a parametric underwriter at...

US supports Floodbase programmes in Mozambique and Malawi

Mozambique ? ?Malawi ? Flood

Parametric flood specialist Floodbase has been awarded a grant through the US Agency for International Development (USAID) to launch parametric flood insurance programmes in Mozambique and...

Swiss Re: 1,000 policies issued, Japan pay-out, growth predicted

Earthquake ? Hurricane

In an interview with Reinsurance News, Swiss Re Corporate Solutions’ Head of Parametric Nat Cat Martin Hotz says demand for parametric solutions is rising. Swiss Re Corporate Solutions has issued over...

Mexico seeks $360m of earthquake and hurricane coverage

Mexico ? Earthquake ? Hurricane

The government of Mexico is working with the World Bank to secure a parametric catastrophe bond covering $360 million USD of earthquake and hurricane risks, according to Artemis. This is effectively a...

BHSI expands parametric coverage to wildfires

Wildfire ? InsTech report

Insurer Berkshire Hathaway Specialty Insurance has offered parametric hurricane and earthquake insurance since 2019. It is now also offering parametric wildfire coverage globally since the start of...

Inver Re places parametric reinsurance for Istanbul risks

Turkey ? Earthquake ? Reinsurance

Broker Inver Re (part of Ardonagh Group) has recently placed parametric reinsurance coverage for risks in and around Istanbul, underwritten by several reinsurers. It is most likely to...

ASR doubles parametric reinsurance capacity with Inver Re

Africa ? Climate ? Reinsurance

Inver Re has also helped MGA and reinsurer Africa Specialty Risks (ASR) double its reinsurance capacity for parametric risks. ASR says the capacity has been provided by ‘a leading...

Parametric pay-outs triggered to Brazilian farmers

Brazil ? Agriculture ? Weather

Five farmers of Brazilian fruit umbu have received parametric pay-outs of $2,781 BRL ($560 USD) each from insurer Newe Seguros. Their insurance policies were subsidised by...

Jamaica plans hurricane cat bond coverage for 2024-27

Jamaica ? Hurricane ? Catastrophe bond

The Jamaican government plans to purchase a new catastrophe bond to protect it against hurricane risks. Jamaica was previously covered by a parametric catastrophe...

Indian government permits weather derivatives trading

India ? Weather ? Energy

India’s Ministry of Finance has added weather to the list of commodities for which derivatives trading is permitted in India. Weather derivatives are tradeable financial contracts that are...

US backs new typhoon coverage for farmers in Vietnam

Vietnam ? Typhoon ? Agriculture

Parametric technology firm Hillridge and insurer Bao Minh, which first announced a partnership last year, have now launched a parametric product covering typhoons in...

Find out what you've missed...

Issue 66 - When parametric becomes a perk

Issue 65 - Hidden climate risks: the future of parametric?

Issue 64 - Promising signs for the parametric flood market

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Palmer Philip

Happy to work with property insurance professionals from any country as I have placed individuals in multiple locations.

7 个月

Happy to be a resource for candidates and clients in this niche when traditional networking is not adequate.

回复
Palmer Philip

Happy to work with property insurance professionals from any country as I have placed individuals in multiple locations.

8 个月

What an exciting @time for everyone in parametric risk!

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