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The InsTech perspective… what’s your embedded parametric insurance product idea?
Insurer MIC Global has launched an innovation competition for MGAs and platform companies with ideas for a new embedded insurance product. MIC Global will provide insurance capacity to the winners as well as help with designing and implementing the product.
MIC Global was recently granted “in principle” approval to create a Lloyd’s syndicate. It underwrites microinsurance products, many of which use parametric triggers, in 12 countries. It wrote $12 million USD in gross written premium in 2021. You can learn more about MIC Global by reading our interview with Founder and CEO Harry Croydon earlier this year.
You can apply for the competition here. The application deadline is 30 June 2022. Winners will be announced at InsTech’s in-person event on 13 September 2022.
A key differentiator of parametric insurance is the speed of claims payments. The way payments are made has changed significantly over the past few years and customers expect transparency, choice and immediacy. You can learn more about parametric and other insurance use cases of payments technologies at our upcoming evening event at CodeNode London on Thursday 24 May, sponsored by Mastercard and Stripe.
We are close to finalising our upcoming report, “Parametric Insurance in 2022: the 150+ companies to watch”. It will be free for InsTech corporate members to download from 14 June 2022. Everyone else can apply now for a free pre-release discount code saving you 50% off the published price.
In the news…
India • Cyclone • Energy
MGA Descartes Underwriting discusses how it provided parametric cyclone and tsunami coverage for an energy company’s offshore assets in India. The policy used wave height as an index and paid out in days after being triggered by Cyclone Tauktae in May 2021.
US • Flood
ICEYE, which provides building-level flood depth data, has partnered with Neptune Flood, an MGA underwriting residential and commercial flood insurance in the US. Neptune acquired parametric earthquake MGA Jumpstart in 2021 and will explore using ICEYE’s data for parametric triggers. ICEYE already works with parametric insurance providers Descartes Underwriting and AXA Climate.
Guatemala • Earthquake • Weather
The Microinsurance Catastrophe Risk Organisation (MiCRO) and insurer Aseguradora Rural have offered parametric microinsurance in Guatemala since 2017. The product covers smallholder farmers and microentrepreneurs against earthquakes, excess rainfall and severe drought. Swiss Re provides reinsurance capacity and technical assistance. This case study assesses the performance of the product, which paid 74,200 claims from 2017 to 2020.
US • Weather
The Weather Risk Management Association (WRMA) is holding its annual event in Miami on 18-19 May 2022. The event includes case studies and panel discussions with speakers from Aon, CelsiusPro, Descartes Underwriting, Swiss Re, Raincoat and others offering parametric weather insurance solutions. You can register for the event on the WRMA website.
Africa • Epidemic
Multi-country parametric risk pool African Risk Capacity (ARC) has formed an alliance with the West African Health Organisation and research facility Institut Pasteur de Dakar to support epidemic response in Africa. ARC is working on a parametric insurance product to protect member states against outbreaks of Ebola, Marburg, Lassa fever and Meningitis.
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