In this article in Insurance Asia News, Jeremy Waite, Head of Catastrophe Advisory Group, Asia Pacific, discusses how index-based products can complement reinsurers’ capital protection platforms and provide quicker access to funds compared to traditional cover.
“Parametric insurance can fill the protection gap left by indemnity insurance from deductibles, excluded perils, scarce capacity and contingent business interruption,” Jeremy explained.
The parametric market is growing rapidly, with more entities offering parametric products or partnering with managing general agents (MGAs) or managing general underwriters (MGUs) that offer specialized expertise and capacity.