The Parametric Post Issue 2 - Parametric insurance news from InsTech London

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Issue 1 of our new parametric insurance newsletter generated so much interest that we’re switching it from monthly to fortnightly. You can keep up to date with the latest developments in parametric insurance by signing up for free using the form at the bottom of the page. Below is the second issue (27 May).

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. 

Earthquake sensors' potential for personalised policies

Safehub provides easy-to-use sensors which assess the damage to a building during an earthquake. These and other internet of things devices could integrate with parametric insurance policies to send automatic payouts after an event based on the damage caused, according to Stacey on IoT. Matthew spoke to Andy Thompson, Safehub’s co-founder and CEO, on podcast episode 133.

Japan earthquake parametric payout

A manufacturing company received a payout on its parametric policy with Swiss Re after an earthquake on February 13th. The policy is based on the Japan Meteorological Agency’s seismic scale, and paid out three days after the agency confirmed the ground shaking intensity.

InsTech interview: Cryptocurrency capital for parametric insurance

Ensuro is developing a decentralised underwriting solution for parametric insurance products, using cryptocurrency funds governed by a smart contract. We spoke to founder and CEO Marco Mirabella to learn more about the company’s plans.

Parametric catastrophe cover planned for Colombia

Hannover Re and Willis Towers Watson are developing insurance products to increase Colombia’s resilience to hazards. These include a parametric risk transfer product for floods and earthquakes and indemnity landslide insurance. The products are intended to be trialled in the city of Medellín to encourage their use across Colombia and Latin America.

New Paradigm podcast interview: US hurricanes and earthquakes

Matthew interviews Evan Glassman, co-founder of New Paradigm Underwriters, on episode 138 of the InsTech London podcast. They discuss basis risk in traditional and parametric insurance, the benefits of parametric products to protection sellers and how to educate brokers and buyers about parametric. Listen or read on our website.

Canola heat blast protection product announced

We’ve spoken to Farmers Edge, who are a Canadian digital agriculture platform now offering a parametric insurance product to protect canola farmers against heat blast. Heat blast is when sustained high temperatures disrupt the growth cycle of the canola plant.

Covering energy price risk with parametric insurance

The cargo industry is highly exposed to changes in the prices of fuel and freight. Paratus Group has written parametric policies covering fuel price risk for the shipping industry, and has more products planned. Henry spoke to Founder and Group CEO Gus Majed to find out more.

Parametrix raises $17.5 million

Parametrix has announced the completion of a $17.5 million fundraising round. This comes after the company partnered with INSUREtrust, a specialty broker focused on cyber risk, to sell its IT downtime parametric products. Matthew interviewed Parametrix’s co-founder and CTO Neta Rozy for InsTech London podcast episode 115.

Parametric evacuation assistance wins student challenge

AM Best’s inaugural student challenge was won by Andrew Shaw and Madison Wescott, two graduate students from the University of Wisconsin-Madison. They proposed a parametric insurance policy to provide low-income families with emergency funds during an evacuation in the event of a hurricane, flood or wildfire.

Parametric weather protection for vacation rentals

Arbol has partnered with holiday rental management platform RealTimeRental to offer a weather protection product for vacation rentals. Arbol monitors weather conditions in real time and pays out to renters if it rains for more than half the duration of their stay.

Somalia signs treaty with African Risk Capacity

The Somali government has signed a treaty and memorandum of understanding with parametric catastrophe insurance agency African Risk Capacity (ARC). Somalia, exposed to hazards including droughts, floods and cyclones, becomes the ARC’s 35th member.

Parametric flood cover for Yangtze River basin considered

The Asian Development Bank hosted a workshop with China’s Ministry of Finance to discuss improving financial resilience to natural disasters. Parametric insurance was put forward as a solution for China’s frequent floods, with a potential trial in the Yangtze River basin.

Hurricanes are coming - and there's a new insurance solution

2020 was the fifth-costliest hurricane season on record, and we should be braced for another active hurricane season this year. In the Insurance Business Magazine, Megan Linkin, senior parametric nat cat underwriter at Swiss Re Corporate Solutions, recommends a combination of traditional and parametric policies.

 

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