The Parametric Post, the only newsletter dedicated to parametric insurance.
Thought for the day… is it time for a humour index?
Wearables have been a popular choice for new parametric solutions over the years – tracking everything from steps taken and heart rate to driving behaviour and sleep patterns. Often integrated with health and lifestyle insurance, these devices reward customers for healthier or safer behaviour. For example, telematics programmes monitor speed and driving habits to reward safe drivers with reduced premiums. Vitality Life offers incentives and premium reductions based on customers’ healthy living. A few years ago, there was even an attempt to introduce a parametric toothbrush to reward children for frequent brushing.
But is there a missed opportunity here? Those of you who are regular followers of InsTech will know that we try not to take ourselves too seriously. We encourage a bit of humour at our events, indeed we were even commended for that when the CII awarded us continual professional development (CPD) accreditation for our events and podcasts. Exercise is important but studies have shown that laughter isn’t just good for the soul – it boosts immunity, lowers stress and even strengthens cardiovascular health to reduce the risk of heart attack while strengthening social bonds.
So wouldn’t the best measure of our health be an index characterised by how frequently we laugh? If our watch can measure our steps, heart rate, blood pressure, how often we sleep, where we are and how we are driving, surely it’s a small leap to be able to configure a wearable to track our laughter? Now that would be a parametric index to take seriously.
Making parametric insurance simpler and more accessible – the role of specialist brokers
InsTech event
Our upcoming networking event is hosted by InsTech and Miller’s parametric team. Together we will explore the role of specialist brokers in expanding the parametric insurance market by simplifying products and educating clients. The session will focus on how dedicated broker teams can improve accessibility, facilitate collaboration among industry stakeholders and unlock the potential of parametric solutions for risk management.
Parametric payout for a disrupted world
InsTech podcast • Supply chain
On a recent episode of the InsTech podcast, Matthew was joined by Otonomi’s Co-founder and CEO, Yann Barbarroux, to discuss how parametric insurance is being used to mitigate supply chain risks in maritime and air cargo where traditional insurance often falls short. The conversation highlighted real-world case studies and the growing adoption of parametric products, particularly in the freight sector, as well as the role of AI in scaling operations and managing risk accumulation.
In the news…
Demex raises $10.25m for parametric stop-loss reinsurance
Weather
The Demex Group has raised $10.25 million USD in funding, led by Congruent Ventures, to meet increasing demand for its parametric stop-loss reinsurance solution. The company offers coverage for losses from severe convective storms (SCS), including tornadoes, hail and wind. With $65 million USD in reinsurance bound during the first selling season, Demex’s solution aims to help insurers manage high-frequency weather-related losses.
Trigger Parametric launches to offer global parametric coverage
UK
Former executives from Africa Risk Services (ARS) and Stable have launched Trigger Parametric, a UK-based firm providing parametric cover for natural and man-made perils worldwide. Operating as both an MGA and a fronting (re)insurer, the company’s leadership team includes Raveem Ismail, Ian Bishop (both former ARS), William Ormerod and Patrick Tear (both former Stable), with support from insurtech veteran Graeme Dean.
Cover for Jamaican farmers triggered by Hurricane Beryl
Jamaica • Hurricane • Agriculture
Skyline Partners and Munich Re made a payout to the Jamaican Co-operative Credit Union League (JCCUL) under a parametric insurance policy triggered by Hurricane Beryl. The policy allows farmers to take a payment holiday on micro-loans following extreme weather. Beryl did not make landfall in Jamaica but Skyline’s trigger mechanism responded to the storm’s proximity, resulting in a 45% payout of the total policy value.
BOAD launches “Shock Resilient Loans” programme
Africa • Climate • Health
The West African Development Bank (BOAD) has introduced the “Shock Resilient Loans” programme, combining subsidised loans with parametric insurance to support member countries against climate and health disasters. This covers over $350 million USD in loans across Benin, Côte d’Ivoire, Senegal and Togo. The insurance triggers in the event of disasters such as droughts or pandemics, providing relief by temporarily lifting repayment obligations. Developed in partnership with African Risk Capacity (ARC) and Munich Re, the initiative aims to improve resilience and provide financial relief to countries most vulnerable to shocks.
CelsiusPro and Tower launch platform for cyclone insurance
Pacific • Cyclone • Rainfall
CelsiusPro and Tower have launched a platform for distributing Tower’s parametric Cyclone Response Cover in Fiji and Tonga. The cover, supported by CelsiusPro’s White Label Platform, provides cash payouts when high-wind cyclones reach pre-defined intensity levels. The platform includes self-registration, real-time monitoring and mobile payment options. Tower plans to extend the platform to Samoa and introduce a parametric rainfall product in Fiji later in 2024.
Vaisala acquires Speedwell Climate to address weather-related risks
Weather
Vaisala has acquired Speedwell Climate Ltd, a provider of data and software for climate risk transfer contracts. The acquisition enables Vaisala to help organisations mitigate financial losses caused by weather-related events such as storms and floods. Speedwell Climate’s tools are used across industries including insurance, investment and renewable energy, providing protection against environmental uncertainties.
Vortex increases parametric hurricane insurance limit to $500k
US • Hurricane
Insurtech Vortex Weather Insurance has raised the coverage limit for its parametric hurricane insurance to $500,000 USD, available to businesses along the Atlantic and Gulf Coasts. The insurance provides automatic payouts based on specific storm data from the National Hurricane Center, offering supplemental coverage for costs such as deductibles and lost business days. Businesses can select coverage based on proximity to a storm’s path, with payouts issued within two weeks of a triggering event. No claims or proof of damage are required and there are no restrictions on how the payout can be used.
WRMS expands parametric climate insurance to Latin America
Latin America • Climate
Weather Risk Management Services (WRMS) is expanding its parametric and index-based climate insurance solutions into Latin America, targeting countries such as Argentina, Brazil and Colombia. The company will partner with local insurers, government agencies and NGOs to implement solutions such as cyclone insurance and crop insurance, leveraging local climate data and parametric trigger techniques.
SEADRIF makes $750k parametric payout to Laos
Asia • Typhoon • Flooding
The SEADRIF Insurance Company has issued a $750,000 USD parametric payout to Laos, officially the Lao People’s Democratic Republic (LPDR), following severe flooding caused by Typhoon Yagi. The funds will support recovery efforts in eight affected provinces, including Vientiane Capital and Luangprabang. This initial payout was made on 20th September 2024, with further payments possible as updated data on Mekong water levels is reviewed. The funds will help the government address the needs of the most vulnerable populations impacted by the disaster.
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.
Find out what you’ve missed…
Issue 74 – Birds, burgers and beyond
Issue 73 – Celebrating success in claims payouts
Issue 72 – Hurricane Beryl tests parametric insurance
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