Creating parametric insurance products - The Parametric Post Issue 3

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The Parametric Post is InsTech London's newsletter dedicated to parametric insurance. Sign up for free using the form at the bottom of the page. This week's issue (10 June) covers index design, data and analytics, IoT sensors and embedded insurance, as well as all the latest developments from companies offering parametric solutions.

We have also profiled over 50 companies active in the parametric insurance space in our report Parametric Insurance - 2021 outlook and the companies to watch, which is available to download. The report is free to InsTech London corporate members, who can contact hello@instech.london to get access.

InsTech podcast: how to create parametric products

Matthew spoke to Henri Winand, Co-founder and CEO of AkinovA on InsTech London podcast episode 139 about how the e-placing platform is enabling the transfer of parametric insurance products with its partners. Listen to or read their conversation on the InsTech London website.

Parametric crop insurance case study in Nicaragua

AXA XL is partnered with two Nicaraguan insurance companies to provide weather index insurance to 10,000 coffee and grain farmers. This case study discusses how the thresholds for payouts were set and how basis risk was minimised.

Wakam-Setoo partnership covers ferry delay

Wakam has announced a joint venture with Setoo to launch a parametric ferry delay product in Greece. Through APIs, the insurance is embedded with LIKNOSS, a technology company that manages millions of ferry ticket bookings every year.

Parametric earthquake product becomes available across Mexico

Last year, Super.mx launched a parametric earthquake insurance product, backed by Munich Re, for homeowners, renters and business owners in Mexico City. CEO Dario Luna has announced that the product is now available nationwide.

Designing sensors for parametric products

FloodFlash uses an IoT-connected sensor to provide the data for its parametric flood insurance product. In this interview, FloodFlash’s design lead Pete Codling discusses the challenges in designing the sensor and how the physical and digital elements of the parametric product interact.

Blockchain-based crop insurance for drought and flood

In sub-Saharan Africa, as little as 3% of farmers use insurance, whilst climate variability increases. ACRE Africa has used Etherisc’s blockchain-based platform to create a digitised weather index insurance product. The product demonstration saw Kenyan farmers purchasing seed supplies with insurance embedded and managing their policies over text.

Riskwolf completes pre-seed funding round

Riskwolf, a Swiss startup building a platform for customised parametric insurance products, has raised €685,000 in its first external funding round. The company, whose backers include astoryaVC, plans to deliver products covering digital economy risks including internet outages.

UN chief endorses "catastrophe-triggered instruments"

United Nations Secretary General António Guterres spoke at the Insurance Development Forum’s Summit 2021. He said he was calling for “more and better catastrophe-triggered instruments,” to build resilience and protect people against climate and disaster risks.

Parametric hurricane policy for Mesoamerican Reef

Willis Towers Watson and the Mesoamerican Reef Fund have created a parametric policy to cover hurricane risk to key reef sites in Mexico, Belize, Guatemala and Honduras. Payouts will be triggered by hurricane intensity.

Tennessee authorises parametric coverage

Bill Lee, governor of the US state of Tennessee, has approved statutory changes to incentivise insurance companies to choose the state as their captive domicile. The changes include authorising parametric coverage for the first time.

Investment fraud insurance expanded to US shares

InvestSure provides a parametric insurance product protecting investors against losses caused by allegations of management fraud. After launching to investors in the Johannesburg Stock Exchange in 2018, it has expanded to offer protection to South Africans buying shares on the US stock market.

Pandemic coverage consortium abandoned

Munich Re Innovation Syndicate 1840 at Lloyd’s had planned to create a consortium working on a parametric insurance product for pandemics, which would be triggered by lockdowns and WHO declarations. The syndicate has withdrawn from the project after potential buyers resisted the planned exclusion of Covid-19 from coverage.

New data feeds facilitate air transport policy automation

OTONOMI, a platform offering parametric insurance coverage solutions through blockchain technology, has partnered with decentralised oracle network Chainlink. Chainlink will aggregate data from different providers to automate the claims process for OTONOMI’s air transport insurance offering.

 

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