Parametric insurance provides a simple risk-transfer solution, responding and providing automatically and rapidly a payment following the occurrence of a pre-defined qualifying event when pre-agreed thresholds are proven to have been met or exceeded. Whereas traditional insurance is based on the principle of indemnity and focuses on specific asset losses, such losses to be substantiated by the insured, and subject to assessment by insurers, parametric contracts use independently verifiable parameters that are correlated to the underlying risk.
Simple, transparent, and objective parameters (based on objective third-party data) enable the rapid payment and indisputable settlement of claims post event to clients and impacted communities, eliminating the need for claims assessment and reducing typically associated frictional costs. Parametric solutions can therefore provide additional protection by addressing gaps in traditional insurance coverage and complementing existing arrangements in addition to building socio-economic resilience to natural catastrophes and extreme weather.
MNK Re has deep expertise in the creation, development, and implementation of parametric / index-based solutions. Fully bespoke and customisable, the tailor-made approach offers unparalleled customisation using the latest technology (satellite imagery, modelled data etc) to create highly effective tools for balance sheet protection, generating security and building long term resilience.
Our range of highly innovative, transparent, and data-driven coverages provide financial protection against volatility resulting from a wide range of perils, including but not limited to: