White Paper

Parametric Insurance Has Emerged As a Valued CAT Risk Transfer Solution. Here’s What’s Next For the Market.

During the tough property markets of recent years, the use of parametric insurance products grew. Its use appears to have some staying power, regardless of market cycles.

White Paper Summary

Many insureds have turned to parametric insurance products to address the hardening commercial property insurance rates of the past few years.

And while some thought interest in these alternative risk transfer products would wane as rates softened, inquiries about parametric insurance products remain strong even as experts predict property insurance rates will moderate in 2024. Parametric insurance appears to be making its mark as a permanent part of the risk management tool kit.

“Despite the easing market conditions in the traditional property space, where it’s becoming easier for customers to fully fill out their programs, we’re still seeing an increase in submissions for parametric solutions this year following an unprecedented year of submission growth in 2023,” said Scott Johnson, head of property, Eastern region, Berkshire Hathaway Specialty Insurance (BHSI).

“This growing interest shows us that parametric products are valuable through all market cycles.”

To learn more about Berkshire Hathaway Specialty Insurance, please visit their website.

Berkshire Hathaway Specialty Insurance (www.bhspecialty.com) provides commercial property, casualty, healthcare professional liability, executive and professional lines, surety, travel, programs, accident and health, medical stop loss, and homeowners insurance. The actual and final terms of coverage for all product lines may vary. It underwrites on the paper of Berkshire Hathaway's National Indemnity group of insurance companies, which hold financial strength ratings of A++ from AM Best and AA+ from Standard & Poor's.

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