{"id":602,"date":"2025-05-20T15:08:07","date_gmt":"2025-05-20T15:08:07","guid":{"rendered":"http:\/\/fictionuncovered.com\/?p=602"},"modified":"2025-06-12T10:45:52","modified_gmt":"2025-06-12T10:45:52","slug":"parametric-nat-cat-rates-forecast-flat-to-5-as-interest-grows-outside-peak-perils-wtw","status":"publish","type":"post","link":"http:\/\/fictionuncovered.com\/index.php\/2025\/05\/20\/parametric-nat-cat-rates-forecast-flat-to-5-as-interest-grows-outside-peak-perils-wtw\/","title":{"rendered":"Parametric nat cat rates forecast flat to -5% as interest grows outside peak perils: WTW"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

Parametric natural catastrophe and weather risk transfer rates are forecast to be flat to -5% down, with capacity levels continuing to increase but so too are opportunities, as the focus continues to move beyond peak perils, according to WTW, the parent of insurance and reinsurance broking group Willis.
\n<\/span>
\n\"wtw-parametric-insurance-risk-transfer\"Within the alternative risk transfer (ART) segment, the broking group sees parametric insurance and risk transfer as an area of growth, with applicability both to protection buyers and also captive owners.<\/p>\n

Parametric solutions, \u201cContinue to be a valuable approach, complimenting property policies and adding vital protection for loss costs limited or excluded under a property policy,\u201d WTW explains.<\/p>\n

In its latest spring update on the market in North America, the firm forecasts that rates for parametric nat cat protection are likely to be flat to -5% down over the coming quarter.<\/p>\n

With insurance and reinsurance industry capital levels high and growing still there is no surprise rates-on-line for parametric solutions would face some pressure.<\/p>\n

As a result, WTW notes on the parametric market that, \u201cCapacity continues to increase and while established for large and complex insureds, it\u2019s now actively targeting middle-market and smaller insureds.\u201d<\/p>\n

Adding that, \u201cThe middle-market segment is adopting creative strategies such as alternative program structures as well as parametric and captive solutions.\u201d<\/p>\n

While parametric solutions have become established for peak catastrophe perils, such as hurricanes and earthquakes, WTW explains that adoption continues to expand for other risks.<\/p>\n

\u201cInterest is growing for wildfires, tornadoes, hail and general weather (rain, temperature, snow) perils that can impact physical assets but also cause financial loss,\u201d WTW said.<\/p>\n

Also explaining that, \u201cParametric products continue to evolve, leveraging data sources and deploying multi-faceted indexes to ensure robust response during events.\u201d<\/p>\n

One area of innovation is also in the design of parametric triggers, with WTW highlighting that previous events have driven more of a focus on making triggers increasingly robust.<\/p>\n

\u201cHurricanes Helene and Milton highlighted deficiencies in single-peril cat-in-a-circle programs due to size of storm systems and loss driven by surge or excess rainfall versus windspeeds,\u201d the broking group highlights.<\/p>\n

In the captive space, WTW also noted that, \u201cInterest in parametric solutions, especially concerning climate and environmental risks, remains strong, as clients seek capacity that may not be available in traditional insurance markets.\u201d<\/p>\n

\u201cManaging risks is no longer just about the traditional risk transfer solution. It\u2019s finding creative ways to structure programs, including alternative risk transfer solutions, captive solutions as well as parametric solutions for our clients and their industry partners,\u201d WTW said.<\/p>\n

Finally, capital market led solutions are another area of expanding interest in the alternative risk transfer space WTW believes.<\/p>\n

Which is particularly relevant for parametric solutions, where insurance-linked securities (ILS) investors continue to show a strong appetite.<\/p>\n

Watch this video from our ILS NYC 2025 conference for more on the parametric ILS investment opportunity<\/a><\/strong>.<\/p>\n

Read all of our parametric insurance and risk transfer news and analysis<\/a>.<\/p>\n

Parametric nat cat rates forecast flat to -5% as interest grows outside peak perils: WTW<\/a> was published by: www.Artemis.bm<\/a>
\nOur catastrophe bond deal directory<\/a>
\nSign up for our free weekly email newsletter here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Parametric natural catastrophe and weather risk transfer rates are forecast to be flat to -5% down, with capacity levels continuing to increase but so too are opportunities, as the focus continues to move beyond peak perils, according to […]<\/p>\n","protected":false},"author":1,"featured_media":604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/602"}],"collection":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/comments?post=602"}],"version-history":[{"count":2,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/602\/revisions"}],"predecessor-version":[{"id":605,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/602\/revisions\/605"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media\/604"}],"wp:attachment":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media?parent=602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/categories?post=602"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/tags?post=602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}