Physical climate modelling, natural catastrophe risk, and parametric insurance — roughly every two weeks.
The previous post covered how tropical cyclone risk gets modelled. This one covers what happens once that risk needs to be transferred — and increasingly, the answer is parametric insurance rather than a traditional indemnity policy.
Read full post →Tropical cyclones are the costliest natural peril on the planet — a single landfalling storm can generate tens of billions of dollars in insured and uninsured losses within days. For decades, quantifying that risk was the job of a handful of catastrophe modelling firms serving (re)insurers. That has changed. Banks assessing mortgage and corporate loan...
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