Parametric Insurance

Lori Ussery, Actuarial Consultant

image

Prior SIGMA publications have focused on weather risk mitigation and data available for historical windstorms in the Atlantic:

https://www.sigmaactuary.com/2019/01/07/weather-risk-mitigation-analytical-considerations/

https://www.sigmaactuary.com/downloads/SIGMAWindRisks.pdf

These articles mentioned the use of parametric insurance as a mechanism to mitigate the financial impact of weather-related risk and analytical considerations for quantifying these types of risk. In a recent article published in Captive International, Lori Ussery of SIGMA discusses parametric insurance structures and actuarial analytics available for captives.

https://www.captiveinternational.com/contributed-article/captives-offer-businesses-a-route-into-the-world-of-parametric-insurance

At SIGMA, we continue to see interest in and use of parametric insurance products among our clients, especially related to wind. Some purchase this coverage from the insurance marketplace and rely on analytics to confirm the reasonability of premiums. Others who self-insure or use their captive to cover this type of risk seek actuarial expertise to determine appropriate funding levels. SIGMA actuaries are available to discuss considerations for structuring parametric products and analytics available.

We welcome your feedback by posting a comment or contacting us at support@SIGMAactuary.com.

© SIGMA Actuarial Consulting Group, Inc.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Archives

Recent Posts

September 18, 2024
When Captives Require Multiple Actuaries: Key Considerations
Jason Luckett, ACAS, MAAA, Consulting Actuary
No Comments
In a recent article published by Captive International, Jason Luckett and Ben Brandon of Risk Strategies Consulting look at what happens when a captive sees the need to employ another actuary. Captive insurance companies can be a great tool, as they are uniquely capable of meeting the specific insu...
Read More
August 21, 2024
Navigating the Impact of Claims-made and Occurrence Policies on Loss Development
Andrew Mathis, Actuarial Analyst, and Enoch Starnes, ACI, Captive and Complex Risk Consultant
No Comments
When analyzing insurance-related data, actuaries must always be cognizant of the nuances within the underlying policies, particularly when it comes to their impact on Loss Development Factors (LDFs). The complexities they present may grow more pronounced when the policy type changes over time or has...
Read More
July 24, 2024
Assessing Financial Strategies for Cyber Risk
Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary, and Becky Austin, CCIS, Operations and Project Manager
No Comments
The assessment tools available in RISK66 are an integral part of our platform, and we would like to thank those who have shared positive feedback over the years regarding their usefulness. Because of our desire to continue providing exceptional support to our RISK66 users, SIGMA is excited to a...
Read More
June 20, 2024
Exploring Loss Development Factors: SIGMA's Comprehensive Resources
Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant
No Comments
In 2011, SIGMA’s Tim Coomer authored a blog titled "Understanding Loss Development Factors” in response to the numerous questions we received on the concept of loss development. Since then, it has become SIGMA’s most viewed blog of all time and continues to receive significant amounts of views...
Read More

Subscribe to Our Blog



hello world!
Copyright © 2023 – 2024 SIGMA Actuarial Consulting Group, Inc. All Rights Reserved.
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram