The Parametric Post, the only newsletter dedicated to parametric insurance.
Underwriting weather: reducing uncertainty with claims-driven models
InsTech podcast • Weather • Severe convective storm
In a recent episode of the InsTech podcast, Matt Coleman, Chief Risk Officer of The Demex Group, outlined how the MGA is using ground-up claims data to develop a modelled loss index for severe convective storms, one of the fastest-growing weather-related risks. Demex’s RCR Re cover combines the responsiveness of parametric insurance with the familiarity of indemnity structures.
Seismic synergy: the future of earthquake risk management and parametric insurance
InsTech article • Earthquake • Sensors
InsTech’s webinar, available to watch on demand, brought together Safehub, Liberty Mutual Re and USGS to explore how sensor data is reshaping earthquake risk management and parametric insurance. The session highlights how Safehub’s building-level sensors can reduce basis risk and accelerate claims, with Liberty Mutual Re already deploying the approach in multiple regions.
In the news…
Swiss Re establishes Parametric Centre of Excellence
Reinsurance
Swiss Re’s Property & Casualty Reinsurance business unit has set up a Parametric Centre of Excellence to coordinate its work on parametric solutions across the organisation. It will be supported by a cross-functional team from across the P&C Re business. The announcement follows Swiss Re’s involvement in a parametric reef protection project in Indonesia in partnership with the United Nations Development Programme and the Ocean Risk and Resilience Action Alliance.
Adaptive and Tokio Marine HCC launch power outage cover
US • Weather
Adaptive Insurance has partnered with Tokio Marine HCC to offer GridProtect, a parametric insurance product for short-duration power outages. The cover is available in 18 US states and is designed to provide predefined payouts for businesses following weather-related grid disruptions.
HDI Global and Descartes launch earthquake cover in Japan
Japan • Earthquake
HDI Global SE, in collaboration with Descartes Underwriting, has received regulatory approval to offer parametric earthquake insurance in Japan. The product covers both tangible and intangible losses without deductibles, with payouts triggered by seismic intensity levels defined by the Japan Meteorological Agency.
LM Re launches parametric livestock cover in Colombia
Agriculture • Rainfall • Drought
Liberty Mutual Reinsurance, in collaboration with XS Latam and SFA CEBAR, has launched a parametric livestock insurance product for Colombian farmers. The solution covers both flood and drought risks and builds on a prior drought pilot. Leveraging data from Floodbase and EarthDaily, the product aims to strengthen agricultural resilience and improve access to credit by mitigating weather-related loan default risks.
IDF designs flood cover for Lagos State
Africa • Flood
The Insurance Development Forum (IDF), in partnership with the United Nations Development Programme and the German Federal Ministry for Economic Cooperation and Development, has completed the design of a parametric flood insurance product for the Lagos State Government. Developed with support from organisations including Swiss Re and JBA Risk Management, the solution is intended to provide up to $7.5 million USD in cover, triggered by satellite-derived flood data.
AXA Climate supports flood cover for Togolese communes
Africa • Rainfall • Flood
Three municipalities in Togo, Kloto 1, Golfe 1 and Golfe 7, have signed parametric flood insurance policies triggered by rainfall thresholds measured through local weather stations. The cover was developed with AXA Climate, underwritten by SUNU Assurances Togo and reinsured by ARC Ltd. The project was coordinated with support from national agencies, PADIE and co-financed by the InsuResilience Solutions Fund and Humanity Insured.
CCRIF and CelsiusPro launch microinsurance facility
Caribbean • Weather • Agriculture
Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) has partnered with CelsiusPro and Global Parametrics to launch a microinsurance facility and accompanying digital platform to support inclusive insurance in the Caribbean. The initiative is supported by the Natural Disaster Fund and aims to expand access to the Livelihood Protection Policy (LPP), a parametric product covering wind and rainfall. The LPP will be offered initially in five countries and targets low-income groups such as farmers, fishers and small business owners.
Gallagher Re places multi-peril cover for Lao PDR
Asia • Typhoon • Earthquake
Gallagher Re has structured and placed a two-year parametric insurance policy for Lao PDR via SEADRIF Insurance Company, expanding a previous flood-only cover to include typhoons, earthquakes and landslides. The $16 million USD programme uses a government-reported, impact-based trigger developed with the Lao National Disaster Management Office. Payouts are based on the number of people affected by an event.
Lockton and Parametrix launch SLA insurance for data centres
Cyber
Lockton has partnered with MGA Parametrix to launch an SLA insurance product for data centres. The policy provides payouts in the event of a service level agreement breach and is backed by Lloyd’s capacity. Aimed at developers, operators, tenants and investors, the product is designed to mitigate downtime risk and support financing by offering coverage for performance-related interruptions.
Malawi receives $3.38 million ARC payout
Africa • Drought
The Government of Malawi has received a $3.38 million USD payout from the African Risk Capacity (ARC) following the activation of its parametric drought insurance for the 2024/25 season. The payout includes $3.07 million USD under a traditional policy and $311,000 USD under an anticipatory cover. Supported by the African Development Bank and KfW, the funds will support over 314,000 people.
Liongate Re cat bond combines indemnity and quake cover
Catastrophe bond • Earthquake
A $100 million USD catastrophe bond issued by Liongate Re DAC will provide earthquake reinsurance for two cedants using distinct structures: indemnity-based cover for Japan’s Zenkyoren and parametric cover for Germany’s Sparkassen-Finanzgruppe. The three-year bond offers shared aggregate protection across both regions.
Find out what you’ve missed…
Issue 80 – More demand, more capacity
Issue 79 – Epicentre of innovation
Issue 78 – Risk and resilience in focus
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