PARAMETRICS
“ THE BRIGHTEST FUTURE FOR INDEMNITY AND PARAMETRICS IS INCORPORATING THE BEST ELEMENTS OF EACH INTO A MORE COHESIVE SOLUTION ”
PETER LACOVARA HEAD OF COMMERCIAL , FLOODBASE
the damage caused by flooding or securing capacity . You can see these factors play out across the US , perhaps most predictably in Florida . On the other side of the country , California may not have the same risk factors – but underinsurance is still a huge problem . That ’ s to say that severe weather risk isn ’ t isolated to one particular area . All 50 states have experienced floods in the last 10 years , so there ’ s a large market out there for new products to help .”
Parametric insurance has provided proof-of-concept in the US , which faces a multitude of severe weather events from coast to coast every year . But it ’ s also beginning to gain traction in other parts of the globe that face extreme weather .
Peter Lacovara , Head of Commercial at Floodbase , explains : “ Growth in parametrics largely began in the most natural catastrophe-prone regions , where capacity constraints and the physical damage focus of indemnity left significant economic value exposed . Over time , however , parametrics have demonstrated unique value in lowerdata environments such as the developing world , where the requirements of traditional underwriting can be harder to meet than those of parametrics . insurtechdigital . com 79