Against a backdrop of disruption to business models, a shift from tangible to intangible assets and associated changes to risk profiles, risk managers are seeking new products and services appropriate to the modern world. Boards are demanding that insurance managers find solutions for risks previously incompatible with the traditional market. Therefore, the potential of parametric insurance solutions is increasingly considered.
The benefits are undeniable: transparency of cover, speed of settlement, flexibility of design. However, there are stories of organisations investing time and resource in investigating these solutions and the deal not making it over the line.
This paper, developed by Airmic in association with Swiss Re Corporate Solutions, Marsh and a group of risk managers, will look at the challenges faced when purchasing parametric insurance solutions and how these can be overcome.