Matthew Grant

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.

This report from InsTech London, edited by Matthew Grant and launched in October 2020, ‘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.

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If you’ve read Part One of this series "Parametric Insurance, your fast track to expertise" earlier this week you’ll have got your crash course in Parametric Insurance and can now call yourself an expert (relatively speaking).

Read this and you'll be on your way to knowing more than 99% of what anyone else in insurance knows about a topic that's attracting a lot of interest. That makes you an expert in my opinion.

The debate is heating up just now about who should pick up the cost for messy losses - the kind that are hard to model, and frequently excluded or defined rather vaguely in insurance contracts. Right now, of course, all the focus is who should (and how to) cover the various costs arising from pandemics. Covid-19 today, and whatever hits us next time.

They sit in a hazy nether region between brokers and insurers. Outside of insurance most people will never hear of them. Even those that know of their existence are often only vaguely aware of the role they play. Yet MGAs (Managing General Agents) offer one of the best ways for new, and established, companies to enter into insurance and benefit from an existing large customer base or to take advantage of the best emerging technology.