What is parametric insurance and how does it impact actuarial work?

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Presented by

Cherry Chan, LMAG; Cian Creedon, LMAG; Raghav Ohri, IFoA GI Insurtech Working Group; Matthew Grant, InsTech London

About this talk

Parametric insurance is based on the usage of a parameter that is correlated to the loss. Unlike traditional indemnity products, a measurable trigger and payment amount are fixed in advance, leading to fast payouts and low claims administration costs. Historically, parametric insurance providers have been providing bespoke services mainly on climate related perils for large companies/institutions. This relied on satellite data which has improved significantly over time. Enabled by technology, better data and modelling techniques, a newer cohort of insurtech offerings are moving towards off-the-shelf products focused on SMEs and individual customers, aiming to meet gaps in indemnity cover and covering previously uninsurable risks. This presentation collates findings from the Instech London Parametric Insurance Report with those of the Institute of Actuaries GI Insurtech working party. Hosts: Cherry Chan - Chair, London Market Actuaries' Group Cian Creedon - Treasurer, London Market Actuaries' Group Speakers: Raghav Ohri, IFoA GI Insurtech Working Group Matthew Grant, Partner, InsTech London

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