The Parametric Post, the only newsletter dedicated to parametric insurance.
Thought for the day… Parametric Earthquake – The Movie
Earthquakes don’t feature as much in disaster movies as floods, volcanoes or hurricanes, so we were delighted to be at the premiere of Safehub’s 2-minute “After the Quake” movie this week. InsTech was back on tour in New York and joined by Donna Smith, Director of Marketing at Safehub for our packed event in the brand new Google offices in St John’s Terminal. Getting accurate, location-specific data for any parametric index is essential. Safehub provides small, low-cost sensors – the package is about the size of an iPhone and a couple is enough for most buildings. When the building shakes, a signal is sent out that enables Safehub to measure the damage and define the index for shake intensity. This data also provides an important way for the building owners and management to know if the building is safe to enter or not.
Intrigued by how this works? Take a look at how Rob the Risk Manager hero of the Safehub movie gets updated on the damage and loss to his portfolio directly after an earthquake hits.
More information on Safehub’s partnership with Liberty Mutual Reinsurance can be found here.
This week’s 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.
Future opportunities?
Do you represent an organisation looking for parametric insurance? The Parametric Post reaches parametric specialists across the global (re)insurance market. Contact us out at [email protected] to discuss how we can help you list your requirements.
Please note:
We are not a broker or professional advisor. 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…
La Niña transition exposes Latin America to severe weather risks
Latin America • Weather
Swiss Re Institute highlights Latin America’s vulnerability to weather risks due to a rapid transition from El Niño to La Niña, which is likely to occur this year. This shift is expected to lead to more active hurricanes, straining the region’s infrastructure and agriculture, much of which is not insured.
Growing adoption of parametric solutions reported by Aon
Latin America • North America
Aon reports a significant increase in the uptake of parametric risk transfer solutions over the past year. This growth is driven by a changing perception among insurance and corporate risk transfer buyers towards alternative risk solutions, including parametrics. With developments in data and analytics these solutions are now an important component of risk transfer and financing strategies. Aon notes particular increases in Latin America and North America, where parametric insurance is used to support retention strategies and close protection gaps, especially in regions prone to natural catastrophes.
Zurich Insurance launches solar panel protection
Italy
In the Italian market, Zurich Insurance has introduced ‘Sole Protetto’, a parametric insurance policy for solar panels. The policy, powered by the platform developed by start-up Exante, provides compensation if sunlight levels fall below the level of average annual sunlight exposure.
Augment Risk partners with Skyline Partners
Reinsurance
Augment Risk has collaborated with Skyline Partners to develop parametric-triggered reinsurance products. This partnership aims to enhance the timeliness, transparency and effectiveness of parametric solutions in reinsurance.
Revo introduces weather cover for travellers
Italy • Rainfall
Italian parametric insurance provider Revo has unveiled a new insurance product designed to compensate travellers if rainfall exceeds predefined levels during their holiday.
Puerto Rico seeks $75m in catastrophe bond protection
US • Catastrophe Bond • Earthquake
The Puerto Rican government is issuing its first catastrophe bond, the Puerto Rico Parametric Re Ltd. (Series 2024-1), to obtain $75 million (USD) in parametric insurance for named storms and earthquakes. This new financial instrument, aims to provide quicker financial recovery support following disasters, enhancing the government’s resilience and budgetary liquidity during catastrophes. The bond will cover damages on a per-occurrence basis through May 2027, with different payout percentages depending on the severity of the event.
ISF supports parametric insurance for Burkina Faso farmers
Africa • Agriculture • Climate
The InsuResilience Solutions Fund (ISF), in collaboration with Yelen Assurance, Réseau des Caisses Populaires du Burkina (RCPB) and Cordaid, has initiated a project to enhance the resilience of Burkina Faso’s smallholder farmers through parametric insurance. This initiative addresses the impact of climate-induced droughts on agriculture, which engages 90% of the country’s workforce. The project will expand drought insurance coverage, introduce excess rainfall insurance and integrate climate-smart agricultural practices to develop the economic stability of farmers living under the poverty line.
World Bank and European Commission advocate for disaster risk transfer
Europe • Catastrophe bond • ILS
The World Bank and the European Commission are encouraging European governments to enhance their use of disaster risk transfer mechanisms, including parametric risk transfer instrument and catastrophe bonds. Highlighting the increased climate risks due to Europe’s rapid warming, reports emphasise the necessity of substantial investments in disaster resilience.
SCOR raises $175m with new catastrophe bond
North America • Catastrophe bond
French reinsurer SCOR has issued a new catastrophe bond, Atlas Capital DAC Series 2024-1, securing $175 million (USD) in risk transfer capacity for named storms in the US and earthquakes in both the US and Canada. This aggregate, index-based trigger cat bond will provide multi-year protection from June 2024 through May 2027.
Heat insurance introduced for Bangladesh dairy farmers
India • Agriculture
Insurtech Ibisa Network, in collaboration with Green Delta Insurance and the NGO APDS, has launched a parametric heat stress insurance product for smallholder dairy farmers in Bangladesh. This insurance aims to provide financial protection against the impacts of heat stress on dairy production.
Platinum Specialty Underwriters acquires Flood Risk Solutions
Flood
Platinum Specialty Underwriters has acquired Flood Risk Solutions, Inc. (FRS), developing its flood insurance offerings for personal and commercial sectors. Founded in 2017, FRS offers tools such as a multi-rater for flood insurance and parametric insurance options.
Find out what you’ve missed…
Issue 70 – Lessons for financially sophisticated regions
Issue 69 – Expansion of sensor-driven parametric earthquake reinsurance
Issue 68 – Parametric travel insurance goes global
Sign up here to receive the latest news, stories and insights on parametric insurance.
