The Parametric Post Issue 1 - Parametric insurance news from InsTech London

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Parametric insurance will be one of the major themes driving changes in insurance over the next decade. To help you keep up with what’s happening in the space, we have launched a monthly newsletter reviewing the companies offering parametric solutions, the types of coverage and what is happening around the world. Below is the first issue (April 29).

We profiled over 50 companies active in the parametric insurance space in our report Parametric Insurance - 2021 outlook and the companies to watch, released in October last year.

CCRIF pays out on volcanic eruption, plans new product

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) will pay out $2.2 million after La Soufrière erupted, despite its current policies not covering volcanoes. It will consider volcanic eruption coverage as it plans new parametric products.

African crop insurtech raises $1.2 million

OKO, which offers parametric policies for farmers in Mali and Uganda, has closed a seed investment round of $1.2 million. It will use the funding to expand to other African markets including the Ivory Coast.

Coral reef insurance 'success stories'

The success of parametric coverage for the endangered Mesoamerican Reef in the Caribbean Sea could be replicated elsewhere, according to Clyde & Co. The Global Parametrics policy paid out $800,000 after Hurricane Delta, allowing resources to be allocated quickly to repair the reef.

Prices and capacity increase for parametric insurance

Willis Towers Watson’s spring update to their Insurance Marketplace Realities 2021 report shows that coverage prices have been increasing in the US while capacity rises. It notes that growing concern over climate change is leading more to adopt parametric weather index products.

Investors flood into parametric insurance

After flooding caused by Storm Christoph in the UK this January, FloodFlash paid out to businesses within hours, reports the FT. FloodFlash and other companies with parametric offerings are drawing the attention of investors.

How parametric payouts can fill the catastrophe 'liquidity gap'

Quicker, flexible parametric payouts can help homeowners and small businesses deal with urgent expenses in the event of a catastrophe, according to Munich Re. A poll from Bankrate found 60% of US adults wouldn’t have the funds to cover $1,000 of unexpected losses following a major event.

From customer to capacity - Bounce Insurance NZ

New Zealanders are underinsured against the risk of earthquakes. Bounce Insurance’s new product uses a seismic trigger, measured by a government agency, to calculate payouts. We spoke to founder and CEO Paul Barton to learn more about the business.

Azure downtime triggers parametric insurance policy

When some Microsoft Azure users had no service availability for nearly two hours earlier in April, the financial damage to a business with mission-critical systems was covered by Parametrix, who paid out in less than a week. We interviewed Neta Rozy for InsTech London Podcast episode 115.

Parametric digital asset risk management demonstrated

A parametric solution for managing digital asset risk such as cryptocurrency has been presented and awarded prizes at a developers’ event.

Parametric products 'perfect' for emerging risk

Airmic (the UK risk management association) CEO Julia Graham suggests that innovative forms of risk transfer, in particular parametric insurance, are ideally suited to meet the challenge of emerging risks faced by businesses.

Tech startup to address Indian agriculture protection gap

The Agriculture Insurance Company of India is partnering with insurtech Gramcover to bring new products, including parametric, to a target of 25 million uninsured farmers.

Cold chains, Covid and parametric insurance

Parsyl is using sensors to keep vaccines and other temperature-sensitive shipments safe in transit. Its parametric insurance policy pays out quickly if the sensors register something wrong, as CEO Ben Hubbard explains on the InsTech London podcast.

How to market parametric insurance products successfully

Educating customers is an ‘essential first step’ to selling parametric insurance, according to bolt in an article that identifies some of the experts in this area. Customers may find that parametric policies will address losses not covered by traditional insurance.

Parametric insurance: 2021 outlook and the companies to watch

From 4 May, our comprehensive report on parametric insurance will only be free to InsTech London members. The report, exploring the history of parametric insurance, what it offers and the companies to watch, has been downloaded by over 1,000 people so far. Know someone who might be interested? Share the link while it’s still free.

 

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