Gallagher Specialty has announced the launch of a new Parametric Insurance Centre of Excellence aimed at addressing the evolving needs of the market.
It will also focus on expanding the accessibility of alternative risk transfer solutions to a broader client base. The broker’s new program comes in response to the escalating frequency and severity of natural disasters, influenced by climate change, which affect businesses both directly through damage to premises and indirectly via non-damage business interruption to operations or supply chains.
The Centre of Excellence is equipped with a dedicated team, including climate risk specialists, parametric brokers, and an actuarial and modelling team. This team is supported by advanced, in-house developed risk modelling technology.
Central to the centre's capabilities is a group of 15 risk professionals, encompassing actuarial and catastrophe exposure modelling experts. This team leverages a suite of catastrophe models through partnerships with leading risk management entities RMS and AIR, as well as developing tailored models for specific risks like wildfire and hail, which are not extensively covered by mainstream models. These proprietary models, crafted using tools such as Eigenprism and Spatial Key, offer clients unique insights into risk management.
James Bosley, an experienced advisor in climate risk transfer and parametric solutions, leads the initiative as the newly appointed head of climate strategy at Gallagher Specialty.
“With the increase in frequency and severity of natural catastrophes, as well as the associated changes in weather patterns, brokers must think more broadly about clients increasing exposure,” Bosley said. “Not only must we help them de-risk, but also help provide a level of resilience. Parametric insurance, with its transparent triggers, quick pay-outs and ability to address non damage business interruption, is uniquely placed to assist with this and combat the increased cost of revenue impacts from weather and/or natural catastrophe events.”
In an effort to continue its commitment for initiatives towards de-risking, Gallagher Re’s most recent report also tackles the questions of renewable energy projects and their status in 2024.
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