"Creating Tailored Risk Solutions"
Parametric
Information page
Overview
What we do
Parametric Insurance is an alternative solution to traditional insurance products, where extreme climate conditions are a potential cause of financial loss.
Parametric cover is a good way of protecting contingent business interruption where you have no direct ownership but do have a financial interest.
Parametric cover works by stating a limit with certain parameters to trigger a pay-out.
Underwriters calculate the probability of the pay-out using historical weather indexes to provide the premium payable.
The pay-out is not based on any physical damage loss, but purely the trigger point being satisfied and is normally paid within 7 days of verification of the event.
A key benefit of parametric cover is they are paid from the ground up.
Type of policies
Risk Transfer
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Agreed limit
PERILS
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Windstorm
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Earthquake
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Temperature extremes
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Snow fall
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Anything that has an historical index of data
Limits available
Capacity
There is a lot of capacity available for this business. It really depends on the peril insured and the available capacity in the market and the triggers.
How do we place this
Risk
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Open market only, each transaction is unique.
Minimum Premium USD / CAD / EURO 125,000
Industries
Business
This cover lends itself to any industry, we can look at transmission and distribution lines as an example. Parametric started in the agricultural arena and has developed from there to just about anything.
Examples
Real risks
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Rainfall on a golf course, the course was built in the mountains.
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Wind buy back on a Casino
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Transmission & Distribution Line in Canada against Ice
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Windstorm risk in Southern Florida to protect contingent business income from the Port of Fort Lauderdale being destroyed.