White Paper

Nat Cat Parametric Coverage: Innovative Risk Financing In The Face Of Climate Change And Unpredictability

What are the fundamental drivers behind the rise of NAT CAT parametric solutions? Why are corporate buyers seeking alternative risk transfer solutions?

White Paper Summary

Let’s examine several drivers within the risk management and financing markets. One of them is a rapidly growing reality and the impact of global climate change. Changes in weather patterns, rising sea levels, and increased severity of weather-related events – all are changing and reshaping the planet’s climate (see our latest nat cat sigma for more on that). North America has experienced several large natural catastrophes in recent years, including hurricanes making landfall in the United States and in the Caribbean as well as earthquakes and wildfires in Southeastern California.

Secondly, there is a significant volatility in the insurance market, with increasing rates and reduced available capacities for risk transfer. The consumers – insurers through re-insurance, corporate buyers faced with increased deductibles and risk retentions, or self-insured municipalities looking to assemble risk protection for infrastructure – are all seeking compatible structures along with their traditional programs or creating new structures for assets vulnerable to natural catastrophes.

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Swiss Re Corporate Solutions offers innovative, high-quality insurance capacity to mid-sized and large multinational corporations and public entities across the globe.

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