Lockton sets up Global Parametric Insurance Practice
Lockton, the independent insurance and reinsurance broking group, has announced the formal launch of a new Global Parametric Insurance Practice, bringing together its parametric risk transfer expertise under one specialist unit.
Lockton will aggregate its parametric expertise across its teams, including data science and risk modelling, within the new unit, with a goal to develop efficient, customised parametric solutions to help its clients protect themselves against exposures that often cannot be served by traditional coverage.
“Over the past three years, Lockton has invested significantly in parametric expertise and resources across the U.S., Latin America, Europe, and Singapore,” explained Diego Monsalve, Latin America and Caribbean Head of Risk Practices and International Head of Parametric Solutions. “This global team is uniquely positioned to address our clients’ risk management challenges through innovation, delivering the high-caliber solutions they’ve come to expect from Lockton. We are excited to support our clients as we move forward with this initiative.”
“Parametric insurance solutions offer significant benefits that can help meet the needs of businesses seeking a more efficient and cost-effective approach to uncertainty,” added Peter Rapciewicz, Executive Vice President and Practice Leader of Alternative Risk Solutions and U.S. Head of Parametric Solutions. “Lockton’s investment in a Global Parametric Insurance Practice underscores our commitment to delivering resilient solutions that not only provide financial protection but also empower businesses to continue operations seamlessly despite challenges.”
Lockton said that its Parametric Insurance Practice will bring together expertise across multiple regions of the world, helping commercial clients by delivering comprehensive risk assessments, the use of data scientists and advanced analytics to design triggers that can be used in insurance structures to address potential losses.
“This tailored approach provides a valuable complement to traditional insurance policies, filling coverage gaps with a cost-effective solution where it’s most needed,” the company said.
With parametric solutions seen as a growth area across insurance and reinsurance, almost every major brokerage now has a dedicated business unit that brings together parametric expertise.
As this marketplace continues to grow, it is increasingly of interest to insurance-linked securities funds and investors as well. Hence, our upcoming New York conference will feature a panel session dedicated to the growth potential of parametrics as an ILS investment opportunity.
