Parametric Insurance

Costero is able to access a broad range of Parametric Insurance solutions developed by London and Global Parametric and Technology providers that are innovating constantly and have significant appetite for growth across a multitude of industries and perils. We work closely with our clients to understand their risk exposures and the data that is critical to their business, and then access these providers to build the right solution to augment their traditional insurance program.

How It Works

A parametric policy is simply: “if this happens, then this is paid”. The policy agrees to pay a claim based on the occurrence of a parameter exceeding a pre-agreed level, which is correlated to a client’s exposure. An example parameter could be flood water reaching an agreed height, or wind reaching an agreed sustained speed within range of an insured’s assets, causing damage to property.

Importantly, due to the fact that all parameters and payouts are agreed at inception, if a policy is triggered during the period, the claim can be paid as soon as the event is verified using independent / 3rd party data (possibly within 24 hours) which provides access to critical cashflow and emergency funding when our clients need it most.

Parametric insurance can provide a solution for excess catastrophe exposure, or lower, ground up limits/deductible covers. Both usually complement traditional insurance policies/products. It also covers non-traditional and Non-Damage BI & Contingency exposures, and can provide stand-alone catastrophe cover.

Summary of Benefits

• Tailored and bespoke policy coverages
• Non-Damage Business Interruption
• Standalone Natural Catastrophe Cover
• Non-Damage Business Interruption

• Tailored and bespoke policy coverages
• Standalone Natural Catastrophe Cover
• Rapid claims settlement, and no requirement for loss-adjusting

Summary of Covered Perils

• Flood/Excess Rainfall/Drought
• Hail
• Earthquake
• Wildfire

• Wind/Windstorm or lack of Wind (e.g. as input for Windfarms)
• High & Low Temperatures, Frost, Sunshine (e.g. as input for Solar)
• Wave Height/River Height/Flow (e.g. input for Hydro)
• Alternative Parametric (Travel Delay, Cyber, Active Shooter, etc)