Lockton Launches New Global Parametric Insurance Practice to Address Emerging Risks
Lockton, the foremost independent insurance brokerage and consulting entity, has announced a significant leap forward in risk management with the introduction of its Global Parametric Insurance Practice. This innovative segment is designed to offer businesses alternative insurance solutions tailored to navigate the complexities of modern risk landscapes, which traditional insurance products may overlook.
The announcement, made on December 16, 2024, marks a pivotal moment for Lockton, which is already known for its extensive resources and expansive reach in the insurance sector. By pooling together experts from diverse fields including data science and risk modeling, Lockton aims to develop customized parametric solutions that can directly address clients' unique risk challenges. Diego Monsalve, who heads Lockton's Risk Practices across Latin America and serves as the International Head of Parametric Solutions, expressed optimism about the initiative. He said, "This global team is uniquely positioned to address our clients' risk management challenges through innovation, delivering the high-caliber solutions they've come to expect from Lockton."
In recent years, the frequency and severity of natural disasters, such as hurricanes and wildfires, have escalated. Coupled with the increasing complexity of risks manifested through cyber threats and supply chain disruptions, the demand for alternative risk solutions has surged. The global parametric insurance market is predicted to grow considerably, with forecasts suggesting it could reach $39.3 billion by 2032, according to Global Market Insights. This significant projection reflects the urgent need for innovative insurance products that offer broader coverage than conventional commercial property insurance.
Parametric insurance stands out primarily for its operational efficiency, as policies are structured to provide payouts based upon predetermined triggers, such as the magnitude of a storm or the intensity of an earthquake in a specified area. Unlike traditional insurance that typically compensates losses post-event based on damage assessment, parametric insurance can offer financial relief within days of a triggering event, enabling businesses to recover more swiftly and minimize operational disruptions.
Furthermore, Peter Rapciewicz, Lockton's Executive Vice President and Practice Leader of Alternative Risk Solutions, emphasized the importance of these solutions in contemporary business strategies. "Parametric insurance solutions offer significant benefits that can help meet the needs of businesses seeking a more efficient and cost-effective approach to uncertainty," he explained, highlighting Lockton's investment as a testament to its commitment to resilient risk management solutions.
Lockton's team leverages state-of-the-art data analytics combined with extensive risk assessment to determine the most effective parameters and triggers for their clients' unique situations. This strategic approach not only addresses coverage deficiencies that persist in traditional insurance frameworks, but also enhances the overall risk management strategy, providing peace of mind in an unpredictable world.
This launch of the Global Parametric Insurance Practice reflects Lockton's broader organizational ethos that prioritizes client needs through private ownership. As a company, Lockton invests its resources and expertise solely into its client offerings, free from external pressures. This independence is designed to foster deep partnerships with clients, ultimately producing superior outcomes in risk mitigation and insurance solutions.
In a world where uncertainties loom large, Lockton is positioning itself as a leader in providing comprehensive solutions for businesses navigating the evolving landscape of risk. By introducing the Global Parametric Insurance Practice, it is not just addressing existing gaps in coverage, but also equipping companies to operate more resiliently in the face of emerging threats and challenges. For further insight into Lockton's range of offerings, visit www.lockton.com.
The announcement, made on December 16, 2024, marks a pivotal moment for Lockton, which is already known for its extensive resources and expansive reach in the insurance sector. By pooling together experts from diverse fields including data science and risk modeling, Lockton aims to develop customized parametric solutions that can directly address clients' unique risk challenges. Diego Monsalve, who heads Lockton's Risk Practices across Latin America and serves as the International Head of Parametric Solutions, expressed optimism about the initiative. He said, "This global team is uniquely positioned to address our clients' risk management challenges through innovation, delivering the high-caliber solutions they've come to expect from Lockton."
In recent years, the frequency and severity of natural disasters, such as hurricanes and wildfires, have escalated. Coupled with the increasing complexity of risks manifested through cyber threats and supply chain disruptions, the demand for alternative risk solutions has surged. The global parametric insurance market is predicted to grow considerably, with forecasts suggesting it could reach $39.3 billion by 2032, according to Global Market Insights. This significant projection reflects the urgent need for innovative insurance products that offer broader coverage than conventional commercial property insurance.
Parametric insurance stands out primarily for its operational efficiency, as policies are structured to provide payouts based upon predetermined triggers, such as the magnitude of a storm or the intensity of an earthquake in a specified area. Unlike traditional insurance that typically compensates losses post-event based on damage assessment, parametric insurance can offer financial relief within days of a triggering event, enabling businesses to recover more swiftly and minimize operational disruptions.
Furthermore, Peter Rapciewicz, Lockton's Executive Vice President and Practice Leader of Alternative Risk Solutions, emphasized the importance of these solutions in contemporary business strategies. "Parametric insurance solutions offer significant benefits that can help meet the needs of businesses seeking a more efficient and cost-effective approach to uncertainty," he explained, highlighting Lockton's investment as a testament to its commitment to resilient risk management solutions.
Lockton's team leverages state-of-the-art data analytics combined with extensive risk assessment to determine the most effective parameters and triggers for their clients' unique situations. This strategic approach not only addresses coverage deficiencies that persist in traditional insurance frameworks, but also enhances the overall risk management strategy, providing peace of mind in an unpredictable world.
This launch of the Global Parametric Insurance Practice reflects Lockton's broader organizational ethos that prioritizes client needs through private ownership. As a company, Lockton invests its resources and expertise solely into its client offerings, free from external pressures. This independence is designed to foster deep partnerships with clients, ultimately producing superior outcomes in risk mitigation and insurance solutions.
In a world where uncertainties loom large, Lockton is positioning itself as a leader in providing comprehensive solutions for businesses navigating the evolving landscape of risk. By introducing the Global Parametric Insurance Practice, it is not just addressing existing gaps in coverage, but also equipping companies to operate more resiliently in the face of emerging threats and challenges. For further insight into Lockton's range of offerings, visit www.lockton.com.
Topics Financial Services & Investing）
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