Once considered as niche, parametric insurance now offers the potential to deliver solutions where conventional insurance has failed.
The technology exists to define and deliver financial protection based on real-time reporting, using accurate, reliable and often free, data. Parametric covers are now in place across a wide spectrum of risk types and sizes, including cyber, health, earthquakes, hurricanes, drought and flooding.
Triggers include shake density, wind speed, water depths, or rainfall. Flight delays, footfall, and hotel occupancy rates have also been used as indices or triggers for less traditional risks.
Our new report, ‘Parametric insurance: 2021 outlook and the companies to watch’ explores the history of parametric insurance, what it offers, what is coming next.
We review over 50 companies that we are following that are either demonstrating leadership in this space or are worth keeping an eye on in the future. Many of the founders or senior members of these companies have joined us for our events and podcasts in the last couple of years. Click through the links in individual company profiles for a chance to listen or read more about what they are doing.
This is the first report in an ongoing series of reviews into the topics and themes we believe will be driving technology and innovation in insurance and risk management in the future, written by Matthew Grant, InsTech London Partner, and Parmjeet Kaur from Insure Pro.