Quite confidential at the start of last century, the market for parametric solutions have gone through many up and downs and provides each year multibillion capacity to protect businesses and communities around the world under the forms of catastophe bonds, index-based crop insurance and weather derivatives.
The current size of the market is still very far from its huge potential but new technologies are opening very promising ways for rapid expansion. Thanks to massive deployment of capital from both public and private sectors, many tech startups have been launched in recent years to benefit from the tremendous untapped potential of the parametric risk market.
TWO market report provides an independent and comprehensive view of the market : history of the market, market size, market organisation, main players, main products, legal aspects, general pricing and portfolio management considerations, opportunities and risks assessment.
Keywords: Parametric insurance, index-based insurance, weather derivatives, power trading, agricultural commodity trading, ILS portfolio management, CAT reinsurance, insurtech, IoT, remote sensing, satellite imagery, big data, artificial intelligence
The comprehensive view of the market provided by the report will benefit any current participant and any potential new entrant, be they protection buyers, traders, risk takers, technology providers or investors.
THE AUTHOR / BERNARD FINAS (WEATHER ACTUARY)
Bernard FINAS, a French citizen, is a graduate of the École Polytechnique (X), of the École Nationale de la Statistique et de l'Administration Économique (ENSAE) and an Qualified Member of the French Institute of Actuaries.
Bernard FINAS is a an independent expert in weather risk management and parametric risk transfer. He has been closely monitoring the market for more than 10 years. A scientist and actuary by academic training, Bernard FINAS is also seasoned market professionnal who accumulates a number of very demanding complementary work experiences. He has contributed to many academic and business projects related to weather risk management with a focus on the application of science and technologies to parametric risk transfer. He was awarded from ENSAE in 2011 the prize of the best final year project for his actuarial thesis on wind risk hedging that was supported by a global reinsurance broker. He worked successively as a data scientist for one of the largest european utility before, a Insurance-Linked-Securities analyst for a top tier reinsurer, an agriculture risk analyst and technical manager for a consultancy company and an underwriting and analytics manager for a broker specialized in weather risk management. Bernard FINAS founded TWO in the United Kingdom at the end of 2017.