Parametrics - deals are converting!
Parametrics are a good talking point with clients and can generate a great deal of interest as an innovative way to de-risk supply chain or increase business resilience. As parametric polices payout based on defined triggers occurring rather than require damage to insured property, they can provide unique ways to cover clients’ unique risk exposures.
Since the beginning of 2022, our specialists have found parametric solutions for the following:
- Holiday rental leasing agent with majority of sales in a natural catastrophe exposed region - should certain events occur, the policy triggers and the agent receives payment for projected cancellation and consequential loss of revenue.
- Flood exposed business with history of claims – exposed to both pluvial and fluvial flooding. Use of a parametric policy to protect the insured’s balance sheet to cover the significantly increased deductibles required by their property insurance carriers.
- Insured previously bought a weather parametric to allow voluntary increase in the attachment of their traditional insurance programme - claim paid under the parametric policy that kept their traditional insurance placement loss free; and at anniversary they not only renewed, but have also purchased an additional and complementary parametric.
These are very recently bound examples. There is much more that can be done and structures available beyond weather or natural catastrophe parametrics. We are actively working on placements for agriculture, reputational risk, occupancy (hotels/flights), credit, event cancellation, supply chain disruption and cash flow financing.
