Parametric Insurance
Transforming risk management with data-driven solutions that ensure faster payouts, improved transparency, and enhanced client satisfaction.
Parametric insurance is an innovative solution that simplifies risk transfer by relying on pre-defined parameters rather than traditional claims processes. Instead of assessing actual losses, payouts are triggered automatically when specific conditions are met, such as weather events, natural disasters, or other measurable occurrences. This approach allows brokers to offer their clients faster payouts, reduced administrative burden, and increased certainty in risk coverage.
Ideal for industries vulnerable to quantifiable risks, parametric insurance is gaining traction for its ability to address gaps in traditional coverage. From agriculture and construction to events and travel, this solution provides peace of mind for businesses facing unpredictable exposures. By leveraging advanced technology and data analytics, parametric insurance delivers precision and reliability, making it an essential addition to any broker’s portfolio.
Our expertise. Parametric Insurance
-
Customising Parametric Solutions
We work with brokers to design tailored parametric insurance products that meet the unique needs of their clients. This involves selecting the right triggers, such as rainfall, wind speeds, or seismic activity, and establishing payout thresholds that align with the client’s risk profile.
Our team ensures that these solutions are practical and reliable, providing clarity to both brokers and policyholders. Whether your client needs coverage for extreme weather events or supply chain disruptions, we help you create precise, data-driven policies that add significant value to your offering.
-
Streamlined Policy Implementation
We guide brokers through every stage of the policy setup process, ensuring smooth and efficient implementation. From identifying suitable parametric triggers to integrating technology for real-time monitoring, our expertise ensures seamless execution.
By simplifying the complexities of parametric insurance, we enable brokers to confidently introduce these solutions to their clients. With our support, brokers can expand their offerings without the need for deep technical expertise, making parametric insurance accessible and effective.
-
Data-Driven Risk Management
Parametric insurance relies on accurate, real-time data to trigger payouts. We provide brokers with access to cutting-edge data sources, such as satellite imagery, IoT sensors, and weather forecasting systems, ensuring the reliability of the chosen parameters.
This approach not only strengthens the credibility of parametric products but also empowers brokers to offer their clients transparency and confidence in the coverage. With a focus on data integrity, we help brokers establish themselves as trusted advisors in delivering innovative solutions.
-
Fast Payout and Claims Processing
One of the most significant advantages of parametric insurance is the speed of payouts. Unlike traditional insurance, where claims require lengthy assessments, parametric solutions provide automatic payouts once the agreed triggers are met.
We help brokers position this benefit to their clients, highlighting how faster payouts can reduce financial stress and operational delays. Our systems ensure that payout processes are automated, transparent, and hassle-free, reinforcing the value of parametric insurance in critical moments.
-
Ongoing Support and Optimisation
To ensure the continued success of your parametric solutions, we offer ongoing support and periodic reviews. This includes monitoring the effectiveness of parameters, adapting triggers to evolving risks, and incorporating the latest technological advancements.
Our commitment to optimisation ensures that brokers can offer competitive and relevant products in a changing risk landscape. We help you maintain strong client relationships and long-term growth by keeping solutions up-to-date.
We work with brokers to design tailored parametric insurance products that meet the unique needs of their clients. This involves selecting the right triggers, such as rainfall, wind speeds, or seismic activity, and establishing payout thresholds that align with the client’s risk profile.
Our team ensures that these solutions are practical and reliable, providing clarity to both brokers and policyholders. Whether your client needs coverage for extreme weather events or supply chain disruptions, we help you create precise, data-driven policies that add significant value to your offering.
We guide brokers through every stage of the policy setup process, ensuring smooth and efficient implementation. From identifying suitable parametric triggers to integrating technology for real-time monitoring, our expertise ensures seamless execution.
By simplifying the complexities of parametric insurance, we enable brokers to confidently introduce these solutions to their clients. With our support, brokers can expand their offerings without the need for deep technical expertise, making parametric insurance accessible and effective.
Parametric insurance relies on accurate, real-time data to trigger payouts. We provide brokers with access to cutting-edge data sources, such as satellite imagery, IoT sensors, and weather forecasting systems, ensuring the reliability of the chosen parameters.
This approach not only strengthens the credibility of parametric products but also empowers brokers to offer their clients transparency and confidence in the coverage. With a focus on data integrity, we help brokers establish themselves as trusted advisors in delivering innovative solutions.
One of the most significant advantages of parametric insurance is the speed of payouts. Unlike traditional insurance, where claims require lengthy assessments, parametric solutions provide automatic payouts once the agreed triggers are met.
We help brokers position this benefit to their clients, highlighting how faster payouts can reduce financial stress and operational delays. Our systems ensure that payout processes are automated, transparent, and hassle-free, reinforcing the value of parametric insurance in critical moments.
To ensure the continued success of your parametric solutions, we offer ongoing support and periodic reviews. This includes monitoring the effectiveness of parameters, adapting triggers to evolving risks, and incorporating the latest technological advancements.
Our commitment to optimisation ensures that brokers can offer competitive and relevant products in a changing risk landscape. We help you maintain strong client relationships and long-term growth by keeping solutions up-to-date.
The benefits of choosing Exance Parametric Insurance
Smarter
Solutions
A+ to unrated, we have paper to match your specific requirements
Proven
Track Record
A trusted reputation for excellence and long-term client success
Exceptional
Underwriting
Comprehensive coverage with flexible custom risk solutions
Got a complex challenge?
We can help you find a better solution.
-
Duncan UrquartHead of Construction and Surety
LinkedInEmailBiographyDuncan Urquart
Head of Construction and Surety
With over 35 years in construction insurance and surety, Duncan brings exceptional expertise to Exance. Most recently as Head of Construction Underwriting at Specialty MGA, he built a successful construction portfolio achieving USD 9.4M GWP. His career spans senior roles at Willis Towers Watson, Lockton, Marsh and Sedgwick, where he developed deep expertise in programme design, risk assessment and portfolio management. Duncan’s proven track record in building successful teams, implementing effective risk controls and maintaining strong loss ratios makes him ideally positioned to lead Exance’s strategic growth across multiple lines.
-
Jordan CampHead of Operations and Distribution
LinkedInEmailBiographyJordan Camp
Head of Operations and Distribution
Jordan’s career began in niche insurance sales, building deep client relationships across diverse sectors. Over the past decade, he has helped insurers expand their distribution channels and product offerings in specialist markets. As Head of Operations & Distribution at Exance, he focuses on developing strong broker and insurer partnerships while ensuring our products meet market needs. His approach balances growth with operational excellence as we strategically expand our team.
-
Mark Griffin Dip CII MCMICEO
LinkedInEmailBiographyMark Griffin Dip CII MCMI
CEO
With over 30 years in insurance, Mark brings comprehensive leadership experience across underwriting, claims and strategic growth. Beginning at General Accident, he played a key role in the CGU and Norwich Union merger to form Aviva. During 11 years at NHBC, he focused on structural warranty products and building construction sector relationships. As CEO of Exance, Mark’s deep industry knowledge and track record in underwriting excellence drives our strategic growth and development of strong insurer partnerships.
Frequently Asked Questions
+ -
What is parametric insurance?
Parametric insurance is a type of coverage where payouts are triggered by pre-defined conditions, such as specific weather events or natural disasters. Unlike traditional insurance, it does not require claims assessments. Instead, payouts are automatic once the agreed trigger is met, making it faster and simpler for clients to recover from losses.
+ -
How does parametric insurance differ from traditional insurance?
Traditional insurance requires a detailed claims process to assess actual damages. Parametric insurance, on the other hand, is based on measurable triggers, such as rainfall levels or wind speeds. Once the trigger occurs, the payout is made automatically, eliminating the need for claims assessments and reducing delays.
+ -
What industries benefit most from parametric insurance?
Parametric insurance is particularly useful for industries exposed to quantifiable risks, such as agriculture, construction, renewable energy, and travel. It is also effective for businesses seeking coverage for natural disasters, supply chain disruptions, or event cancellations.
+ -
How are parametric triggers determined?
Triggers are chosen based on the client’s specific risks and measurable data sources. For example, an agricultural business might use rainfall levels as a trigger, while a construction company might focus on wind speeds. We help brokers customise triggers to ensure relevance and reliability for their clients.
+ -
What are the benefits of parametric insurance for brokers?
Parametric insurance allows brokers to offer innovative solutions that address gaps in traditional coverage. It provides faster payouts, reduced administrative work, and increased client satisfaction. These advantages help brokers differentiate themselves in the market and build stronger client relationships.
+ -
How do payouts work in parametric insurance?
Once the agreed parameter is triggered (e.g., rainfall exceeds a certain level), the payout is made automatically without the need for claims assessments. This ensures a fast and transparent process, helping clients recover quickly from losses.
+ -
What data sources are used in parametric insurance?
Parametric insurance relies on trusted data sources, such as weather stations, satellite imagery, and IoT devices. These sources ensure the accuracy of triggers and provide transparency to both brokers and clients.
+ -
Can parametric insurance be combined with traditional insurance?
Yes, parametric insurance can complement traditional insurance by covering gaps or providing quicker payouts for specific risks. Brokers can offer hybrid solutions to deliver comprehensive protection for their clients.
+ -
Is parametric insurance suitable for small businesses?
Absolutely. Parametric insurance offers straightforward and cost-effective coverage for small businesses facing specific risks, such as weather-related disruptions or event cancellations. We can help brokers design products that cater to the needs of SMEs.
+ -
How can brokers start offering parametric insurance?
We provide end-to-end support for brokers, from product design and parameter selection to implementation and monitoring. With our expertise, brokers can confidently add parametric insurance to their portfolio and deliver innovative solutions to their clients.