How Parametric Insurance can make insurers more resilient

The slow-moving insurance business faces a difficulty in figuring out how to offer protection in a quickly shifting risk environment. To assist individuals impacted in recovering their losses, insurance needs to take a fresh, innovative approach. Insurance buyers are actively looking for low-cost insurance options with quick claims processing. As a unique replacement for conventional policies, certain carriers have launched parametric insurance solutions. Traditional insurance has created a void that parametric insurance, also known as index-based insurance, has the potential to fill. Leading insurers are becoming more interested in these index-based alternative risk transfer options. Because it pays out when a predetermined "metric," such as wind reaching a specific speed or an earthquake of a specific magnitude occurring in a predetermined place, occurs, this sort of insurance is known as parametric insurance. Consequently, a parametric insurance policy doesn't cover a particular loss or physical damage. Instead, it makes a predetermined payment in response to a trigger event. Points of discussion: 1. What specific benefits are provided by parametric? Can you give some examples covering claims payments, coverage and flexibility to consumer? 2. Why is parametric insurance so effective in the age of data and technology as compared to the traditional insurance? 3. There is often an information imbalance in insurance. How do you think parametric insurance solving this problem giving more power to the insurer when it comes to risk? Speaker Bio: Piers Clark & Qasim Akbar, are the Co-Founders of Innovatrix Capital Ltd. Piers and Qasim Co-founded Innovatrix Capital in 2022– a start-up MGA bringing a bleeding edge parametric solution for clinical trial phase failure to the market, and which is currently part of the Lloyd’s Lab cohort 9. Piers has enjoyed a career of over 30 years spanning Commercial and Investment banking to the Insurance industry originating and executing transactions for a wide range of global insurers. Initially providing debt and operational banking products, before he moved into Investment banking. There he focused on structuring and transacting mergers and acquisitions as well as capital raising for leading European insurance groups and eventually became Managing Director and Co-head of the Financial Institutions Corporate Finance team at RBS following the takeover of ABN AMRO. He then pursued a career as a consultant to the industry working providing advice on strategy, M&A and capital raising to a range of clients including private equity firms and early-stage Fintech. Qasim combines a unique blend of commercial and analytical acumen. He is a seasoned executive and entrepreneur, who has operated as strategic partner and advisor to SME and large multinational organisations worldwide engaging with Executives and Boards, advising across industries, particularly within the Lloyd’s and wider (re)insurance market. With a proven track record in sales, marketing, and business production alongside P&L responsibility across broking, advisory, and business management, Qasim has extensive experience operating as a Broker, Strategy Lead, Actuary/Quant, and Risk Manager within the Life and P&C market with vast and well-developed network across the Global financial services space.