Miller’s parametric capabilities are growing
- providing alternative ways for clients to mitigate the precise risks they face
Alice Glenister recently joined Miller as Head of Parametric Solutions. We caught up with her to ask a few key questions about the formation of a new dedicated team, what they are focusing on and how Alice and the team can help you!
Can you give us a bit of background about you and your career?
I have been working in the industry for close to 15 years. My career started at Chaucer syndicates, where I spent seven years working in the International Property team. Having completed a master’s degree in insurance and risk management whilst at Chaucer, I was keen to explore the concept of parametric insurance in more detail. It was a prominent topic of the degree and an area of the industry that I found interesting. After graduating, I moved to Generali as the first-ever parametric underwriter, designing and creating parametric insurance solutions for large corporate clients, with a focus on natural catastrophes and extreme weather event triggers.
Prior to my role at Miller, I worked as Director of Insurance at Mastercard, where I collaborated with insurance partners to design, create and build new and exciting parametric products. Using Mastercard data and payments technologies, the role focused on driving innovation across the parametric industry.
Can you briefly explain parametric insurance in your own words? And how can this help our clients?
In its simplest form, parametric insurance is a data point followed by a payment. Parametric policies agree to pay a pre-defined amount of money when a pre-defined event occurs.
The concept is straightforward in the sense that the claim is paid once the pre-defined parameters (hence the name) are met. Unlike traditional insurance, which relies on lengthy and often time-consuming loss adjustment processes, parametric insurance can provide access to funds far sooner than a traditional policy ever could. The biggest selling point of parametric insurance is the speed at which claims can be paid. In addition to the cashflow this provides there are other benefits too, parametric contracts are transparent and can be far shorter and more exposure specific than traditional policies.
There is also added client satisfaction as the client knows exactly how much they will receive should that negative event occur. With no need for physical damage, parametric solutions can provide coverage for sectors previously deemed uninsurable. When deductibles are increased, premium rates are raised or when classes become excluded in the traditional market, parametric insurance can step in to close the protection gap. Standalone contingent business interruption is also within scope subject to being able to identify the necessary data points.
Why is parametrics such a hot topic?
In the early 1990s, parametric insurance was offered by the largest reinsurers to the largest corporates in the form of a catastrophe bond. Today, parametric insurance is far more accessible to various sectors in the market due to advances in technology and data handling capabilities. As data becomes increasingly available and sophisticated, it’s opening up new ways of gauging and measuring risk.
Parametric insurance is pushing the boundaries of insurability, providing alternative ways for clients to mitigate the precise risks they face. Parametric insurance is no longer limited to the large corporates of the world, it's becoming more mainstream and increasingly used to cover smaller, more niche risks.
How does the team work with North American intermediaries?
As the “core” parametric team, we want to meet our North American intermediaries and help educate in person. We want to share our knowledge and experience to raise awareness of parametric insurance. Where appropriate we can support alongside our intermediary clients on calls, in person or at seminars. We hold strong relationships with the key markets who specialise in this area, enabling us to work together to design and create parametric insurance solutions to meet the exact needs of our clients.
Can you tell us a bit more about Miller’s Parametrics team and the growing capabilities and how you differ from other brokers?
This newly formed team comprises of myself, Rowan Minhas and Charlie Liddle. The three of us all have experience of working within the parametric sector and have a deep understanding of what can be achieved. Whilst the most common parametric triggers are based on natural catastrophes and extreme weather events, we are keen to explore other non-weather triggers and continue the diversification into other areas.
The Miller team is different from other brokers because we are a fully dedicated, centralised parametric team who have a remit to work across all sectors and all geographies. Others either work on parametric insurance as “side of desk” projects or within siloed parametric teams spread across the organisation. This can lead to missed opportunities, inadequate client service, disjointed decision making and lack of clarity as to the remit of each team.
Collaboration in the parametric industry is vital to success. As the core Parametric team, we will empower “parametric champions” across Miller to increase understanding of parametric insurance so brokers can comfortably introduce this topic to their clients. Many clients are not aware of parametric insurance and it’s down to us brokers to educate and inform.
What attracted you to join Miller?
I am excited to be able to build upon the parametric success that Miller has already achieved and grow the profile of Miller within the parametric market. I am also excited to be a part of such a well-respected and successful brokerage, and I look forward to being able to share my knowledge and contribute to the overall success of the firm.
Where do you see the Parametrics team at Miller in 5 years?
The formation of this specialised team underscores Miller’s ongoing commitment to innovation and client-centricity, allowing us to develop and implement cutting-edge parametric solutions tailored to meet the diverse needs of clients. As we continue to grow awareness across the market, the team will continue to grow. We will work hard to push the boundaries of parametric insurance to help clients protect their assets and mitigate risks in an ever-changing world.
