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Lockton Unveils Innovative Global Practice in Parametric Insurance

Lockton, the largest independent insurance brokerage group worldwide, has recently announced its new global practice in parametric insurance. This initiative aims to help businesses implement cost-effective solutions to address the increasing gap between insured and uninsured losses. By leveraging a team of experts, including data scientists and modelers, Lockton is committed to developing efficient, customized parametric solutions that safeguard clients from risks often overlooked by traditional insurance policies.

Diego Monsalve, head of risk for Latin America and the Caribbean, highlighted that Lockton has significantly invested in expertise and resources related to parametric insurance in the USA, Latin America, Europe, and Singapore over the past three years. "This global team is uniquely positioned to tackle our clients' risk management challenges through innovation and provide them with the top-tier solutions they expect from Lockton," he stated.

The urgency for supplemental insurance solutions is growing due to the rising frequency and severity of natural disasters, including hurricanes and wildfires, as well as emerging risks linked to cyber threats and supply chain disruptions. According to Global Market Insights, the parametric insurance market could reach a value of $39.3 billion by 2032, emphasizing the demand for alternative solutions that can fill the gaps left by traditional commercial property insurance.

Peter Rapciewicz, Executive Vice President and head of alternative risk solutions in the US, stressed the significant advantages parametric insurance provides. He articulated that these solutions cater to businesses seeking a more efficient and cost-effective approach to uncertainty. Lockton's investment in a global parametric insurance practice underscores its commitment to delivering resilient solutions that not only ensure financial protection but also enable companies to continue operations amid challenges they face.

Parametric insurance pays out based on specific trigger events, such as storm strength, rainfall levels, or earthquake intensity in a designated area, which may not necessarily cause physical damage. This type of coverage offers clear transparency and rapid payout processes, often settled within days of the event. Such swift responses allow businesses to restore operations with minimal disruption.

Lockton's parametric insurance practice combines expertise from various regions to guide companies through comprehensive risk assessments. By utilizing data scientists and advanced analytics, Lockton identifies the triggering mechanisms that can address potential losses, creating a tailored approach that valuable complements traditional insurance products. This innovative strategy fills the void in cost-effective insurance solutions right where it is most needed.

About Lockton

Lockton is distinguished by its independence, allowing its over 12,600 consultants operating in more than 140 countries to focus solely on clients' needs surrounding risk, insurance, and employee benefits. With expertise having a global reach, Lockton provides profound insights crucial for achieving remarkable results. For more information, visit www.lockton.com.