Market ‘only scratching the surface’ of parametric potential

The appeal and utility of parametric insurance is growing, and the interpretation of basis risk is evolving, Guy Carpenter’s Guillermo Franco and Iceye’s Anke Sielker say

THE potential of parametric insurance as a tool for tackling climate risks is slowly becoming clearer, according to Guy Carpenter’s head of catastrophe risk research, Guillermo Franco, and Iceye’s head of reinsurance practice, Anke Sielker.