Parametric solutions for non-damage business interruption - The Parametric Post
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The InsTech perspective... parametric solutions for non-damage business interruption
Supply chain pressures, the COVID-19 pandemic and a climate-induced increase in weather variability have disrupted businesses around the world in recent years. Organisations are increasingly worried about ‘non-damage business interruption’ (NDBI) losses not covered by traditional insurance. Dozens of events in recent years have caused more than $1 billion USD in NDBI losses, from natural catastrophes to infrastructure failures.
Not all NDBI events are insurable, but parametric insurance is increasingly enabling coverage for risks that were previously difficult or impossible to insure. In this week’s Parametric Post, parametric insurance covers businesses for air freight delays in Latin America, floods in the UK and cyclones in the Pacific. In all those cases, businesses can be hit by revenue drops or cost spikes even if they suffer no physical damage to property.
InsTech’s latest report, ‘Intact but interrupted: parametric solutions for non-damage business interruption risks’, examines the range of parametric solutions available for NDBI risks. We cover products that are quickly becoming established after increased adoption in the last 3-5 years and new solutions we see as promising. You can download the report for free here .
Earthquake ? InsTech event
Last week, InsTech’s Matthew Grant hosted Safehub’s Andy Thompson, Liberty Mutual Re’s Jean-Christophe Garaix and XS Global’s Alejandro Solorzano for one of our most popular events. We discussed earthquake protection gaps and parametric solutions. Safehub is working with Liberty Mutual Re and XS Global to offer parametric earthquake insurance with pay-outs triggered by sensor readings at a building level. If you missed it, you can watch back the webinar on our BrightTALK channel.
Latest parametric opportunities
We know organisations seeking:
Can you offer coverage to any of these organisations? Email [email protected] and we may be able to introduce you to them.
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.
Do you represent an organisation looking for parametric insurance but struggling to find insurance capacity? The Parametric Post reaches parametric specialists across the global (re)insurance market. Reach out at [email protected] to talk about listing your need.
In the news...
Kenya ? Flood
Insurer Britam, reinsurer Swiss Re and aid agency Oxfam launched a parametric flood scheme in 2023 to protect vulnerable communities in...
Canada ? Europe ? Travel
More insurers have adopted Blink Parametric’s technology for parametric travel coverage. Blink Parametric has launched a product with Baloise in Switzerland, extended its...
Peru ? US ? Supply chain
Otonomi, an MGA which offers parametric coverage for freight delays, will distribute its product through online shipping insurance platform Zuru LatAm. The partnership covers...
US ? Beazley
Sola, which launched its parametric tornado insurance product for homeowners in 2023, has paid its first claims after tornadoes hit Tennessee in December. Sola is backed by...
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UK ? Flood
Swiss Re has acquired UK-based flood modelling firm Fathom. Fathom already works with companies in the parametric insurance market on modelling and...
Samoa ? Cyclone
Insurer Tower has expanded its parametric cyclone insurance product, currently available to households in Fiji and Tonga, to Samoa. Available coverage limits range from...
UK
Start-up NormanMax Holdings has received ‘approval in principle’ to launch a Lloyd’s syndicate specialised in natural catastrophe parametric (re)insurance. NormanMax Syndicate 3939 aims to...
St. Kitts and Nevis ? Hurricane
The Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), which provides parametric catastrophe coverage to governments and public utilities in the Caribbean and Central America, has made a...
UK ? Flood
Parametric flood MGA FloodFlash has paid claims following the UK’s storm Gerrit in late December and storm Henk in early January. FloodFlash says its sensors have measured flood depths over...
C?te d’Ivoire ? Agriculture ? Humanitarian aid
The United Nations World Food Programme has purchased parametric insurance against droughts and excess rainfall for over 5,000 rice farmers in C?te d’Ivoire. The insurance is backed by...
Mexico ? Hurricane ? Carbon
AXA Climate, AXA Mexico and environmental consulting firm ClimateSeed have created a parametric policy to protect the mangrove forests of San Crisanto, Mexico, and its community of...
Hungary ? Travel
Allianz Hungary will sell parametric flight disruption cover, designed with technology company InsurWiz, through online ticketing portal Repjegy.hu . Policyholders will receive...
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Executive Chairman of InsTech
10 个月Good to see the Parametric Post posting - three short term parametric deals looking for capacity. Let’s see what we can turn up
CEO and Co-Founder at Otonomi
10 个月Couldn't be a better timing for this report analysis! Global trade logistics are seriously hurting this year-start. Proper insurance coverage for assaults, damages, and delays is now a must-have!