The ability to respond immediately to natural disasters or weather-related losses is the key to mitigating detrimental knock-on effects and getting you back to normal business quickly. This requires quick and flexible risk management. Parametric products provide a simple and transparent coverage concept complimenting traditional insurance coverage for companies aiming to reduce their risk exposure and can cover risks that have traditionally been uninsurable.

For example:

• Lack of wind leads to decrease in energy production for a wind power farm
• Lack of precipitation leads to decrease in water inflow and thus energy production
• A cyclone within 100km of a mine triggers a full site evacuation.

The rise of parametric solutions brings numerous benefits where previously uninsurable risks can now be covered including expenses for items such as first-response programmes, evacuation, loss mitigation or clean-up costs, which are typically not covered or are sub-limited, can now be included.