Natural catastrophe solutions and insights provider ICEYE has partnered with Global Parametrics to develop parametric risk transfer solutions.
Established in 2016, Global Parametrics offers climate and natural disaster risk solutions.
ICEYE’s global Flood Insights data is gathered via satellite imagery and auxiliary ground-level information, providing information on the extent and depth of major flood events in close to real-time.
Global Parametrics will use this data to create and execute parametric risk transfer structures, and to determine whether a specified threshold has been met and the cover triggered in the event of a flood.
Parametric products enhance the resilience of communities vulnerable to flood risk, with fast payments available once a contract’s trigger threshold is reached or exceeded. This both reduces disruption and promotes faster recovery.
Angus Kirk, CEO of Global Parametrics, says: “Our mission is to build economic resilience by extending protection to vulnerable and underserved markets and communities. Advancements in parametric risk transfer mechanisms are critical to that mission. Integrating ICEYE’s flood hazard data into our risk transfer structures supports the development of more responsive solutions to mitigate the financial effects of extreme climate and natural disasters.”
Stephen Lathrope, global head of insurance at ICEYE, adds: “By providing our high-resolution data to Global Parametrics in near real-time for floods around the world, we aim to help significantly reduce the time from impact to payment for communities affected. As a shifting climate escalates the flood threat, the ability to deliver such timely financial support and bolster resilience at the community level is becoming ever more critical.”
