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Your email address will not be published.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

January 8, 2025
Evaluating, Establishing, and Optimizing a Captive Insurance Program
Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant
No Comments
Michelle Bradley and Enoch Starnes were recently interviewed by Captive Insurance Times to discuss how to successfully set up and manage a captive program. If you or your organization is considering captive insurance options, you won't want to miss the expert insight found in their recent article. Q...
Read More
December 11, 2024
Captive Analytical Strategies for Mergers and Acquisitions
Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant
No Comments
In a recent article published by Captive International, Michelle Bradley and Enoch Starnes provide a guide to what needs to be addressed after companies with a captive are acquired or merged. Of the many considerations needed during mergers and acquisitions (M&A), one that may not be clearly def...
Read More
November 14, 2024
Captive Q&A With XN Captive
Sam Espinosa
No Comments
Today we are joined by Sam Espinosa, Co-Founder and CMO of XN Captive, who is shedding a light in this Q&A on the advantages of captive solutions, the evolving market, and how businesses can leverage captives to drive growth and resilience. Q1: From your perspective, what role have captive manag...
Read More
October 23, 2024
A Practical Guide to Navigating Fairness in Insurance Pricing
Rich Moncher, FCAS, MAAA, Consulting Actuary
No Comments
Rich Moncher recently co-authored a research paper with Jessica Leong and Kate Jordan, and it was published by the Casualty Actuarial Society. Each paper in this research series addresses a different aspect of race and insurance pricing as viewed through the lens of property and casualty insurance, ...
Read More

Subscribe to Our Blog



Copyright © 2023 – 2025 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