Blue Marble has launched the Blue Marble Impact Reinsurance Facility, a global initiative designed to expand parametric climate insurance coverage for underserved communities across Latin America, Africa and Asia.
Blue Marble said that the facility aims to address capacity constraints that have limited the growth of climate protection in regions vulnerable to weather-related risks.
The company also noted that the facility is backed by Zurich Insurance with an AA rating and supported by a consortium of highly rated global reinsurers. According to Blue Marble, the facility is structured to be agile and responsive, with capacity allocated to regions and sectors where it is most needed.
The facility provides parametric reinsurance coverage for a range of climate-related risks, including excess rainfall, drought, extreme temperatures, hurricanes, cyclones and storms. Parametric insurance triggers payouts based on predefined weather conditions, allowing for faster claims processing and financial relief after climate events.
Over the past year, the reinsurance industry has increasingly embraced parametric insurance solutions to address complex and emerging risks. One of the more notable ones comes from Swiss Re, developed in collaboration with reinsurance broker Guy Carpenter and data technology firm ICEYE.
This parametric flood insurance policy offers up to US$1.1 million in emergency funding. This solution leverages high-resolution data from real-time satellite imagery, ground sensors, and social media to promptly assess and respond to flood events.
Blue Marble’s facility is available to financial institutions, governments, international organizations and industries serving underserved communities. Targeted sectors include banks, agricultural traders, cooperatives and the tourism industry.
It is also open to insurers and reinsurers seeking to expand their climate risk portfolios using parametric solutions. It is also available to brokers looking to secure additional capacity for clients developing climate risk protection programs.
Blue Marble said that eligibility criteria for the facility include a focus on underserved communities, the use of parametric triggers and coverage specifically addressing climate risks.
The company also said that the facility’s goal is to help close protection gaps by unlocking risk capital and enabling insurers and brokers to develop scalable climate insurance solutions.
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