#USA #Kansas City #parametric insurance #Lockton #Risk Solutions

Lockton Launches Global Parametric Insurance Practice

Lockton, recognized as the largest independent insurance brokerage and consulting firm in the world, has recently unveiled its Global Parametric Insurance Practice. This initiative aims to assist businesses in implementing cost-efficient alternative risk solutions, thus addressing the widening gap between insured and uninsured losses. The practice is essential for companies needing new and innovative insurance strategies amidst growing risks.

The new team spearheading this initiative comprises experts from various backgrounds, including data scientists and model builders, dedicated to creating efficient, tailored parametric solutions. According to Diego Monsalve, head of risk practices in Latin America and international leader of parametric solutions, Lockton has significantly invested in parametric expertise across the USA, Latin America, Europe, and Singapore over the past three years. This global team is uniquely positioned to tackle the risk management challenges faced by clients, delivering sophisticated solutions expected from Lockton.

In light of the increasing frequency and severity of natural disasters such as hurricanes and wildfires, alongside emerging risks like cyber threats and supply chain disruptions, the need for additional insurance solutions has never been greater. Projections by Global Market Insights anticipate that the parametric insurance market will reach $39.3 billion by 2032, highlighting the demand for alternative solutions to fill gaps left by traditional commercial property insurance.

Peter Rapciewicz, Executive Vice President and Practice Leader of Alternative Risk Solutions, emphasized that parametric insurance solutions provide substantial advantages that enable businesses to efficiently and cost-effectively manage uncertainties. Lockton's investment in this global practice underscores its commitment to delivering resilient solutions that not only offer financial protection but also empower businesses to maintain operational continuity despite challenges.

Parametric insurance policies are designed to provide payouts based on specific triggers related to events such as storm strength, rainfall amounts, or earthquake intensity at a given location, which may not necessarily involve physical damage. These policies offer clear transparency and facilitate rapid payouts, often processed within days of an incident, allowing businesses to return to operations with minimal disruption.

Lockton's Parametric Insurance Practice, equipped with regional expertise, will guide businesses through comprehensive risk assessments utilizing data science and advanced analytics to identify triggers that could mitigate potential losses. This tailored approach serves as a valuable addition to traditional insurance policies, effectively closing coverage gaps and providing cost-efficient solutions precisely where they are most needed.

Lockton stands out for its independence, which allows its over 12,600 employees across more than 140 countries to maintain a singular focus on the risk, insurance, and employee benefits needs of clients. With a wealth of expertise spanning the globe, Lockton ensures a deep understanding that is crucial for delivering exceptional results. For more detailed information, you can visit www.lockton.com.