Global Parametrics supports Quintana Roo parametric insurance renewal

Global Parametrics, the parametric and index-based disaster risk transfer specialist owned by CelsiusPro AG, has provided some of the risk capacity to support the renewal of a parametric tropical cyclone insurance cover for the Mexican state of Quintana Roo.

This parametric arrangement has been in place for a number of years, as Mexico’s local governments have increasingly followed the country’s example in utilising parametric triggers to arrange efficient natural disaster insurance.

Global Parametrics has supported the Quintana Roo parametric insurance renewal using its Natural Disaster Fund (NDF), which is a public-private partnership funded by UK and German governmental entities.

As a reminder, the Natural Disaster Fund (NDF) was originally envisaged as a structure to crowd in private capital to support disaster insurance arrangements.

However, as well as the government backing it received, the NDF also shares its risks with global reinsurance firm Hannover Re.

The Fund has a mandate to provide risk capacity for parametric insurance solutions that foster climate and catastrophe resilience for poor and vulnerable communities.

CelsiusPro explained that the parametric insurance renewal for Quintana Roo, Mexico, “Offers the state government parametric coverage for emergency expenditure and early reconstruction in the aftermath of a tropical cyclone.”

The company further stated, “The government of Quintana Roo will use any payouts flowing from this coverage to support costs and losses incurred in critical infrastructure as a consequence of a tropical cyclone impacting highways, water supply, health services and schools as well as other eligible emergency response costs.”