February 23, 2024


Parametric insurance solutions continue to gain wider adoption, but the technology behind their triggers is also critical and the solutions are evolving rapidly, Callum Higgins of Moody’s RMS and Martin Hotz of Swiss Re Corporate Solutions explained in a recent video interview.

rms-hwind-swiss-re-parametric-insurance-jun2023Artemis recently spoke with Callum Higgins, Product Manager, Incident Response Services, Moody’s RMS, and Martin Hotz, Head of Parameterized Nat Cat, Swiss Re Corporate Solutions, to learn more How Parametric Triggers Are Used in Hurricane Insurance and Risk Transfer Today.

The pair discussed advanced catastrophe risk modeling tools and their application in delivering parametric risk transfer solutions, with a particular focus on hurricane risk and the Moody’s RMS HWind product.

Higgins explained some use cases for HWind products in risk transfer, saying:’, “Decisions are being made around that specifically in the area of ​​insurance-related securities, such as around the live cat trade, but also in terms of investor relations. So, for example, what it means for a fund to be able to communicate with investors as a storm approaches land.

“The ILS space is one area where we see HWind forecasts being used particularly heavily.”

Learn more about using Moody’s RMS HWind as a parametric insurance contract trigger.

Hotz highlights how Swiss Re Corporate Solutions uses HWind productssaid, “We offer parametric hurricane insurance to commercial insureds based on Moody’s RMS wind speed data and its HWind real-time data, and we issued the first policy based on HWind settlement back in 2016.”

“So we’re now in the eighth hurricane season where we’ve had that kind of coverage, and it’s really paid for some of the industry-shaping events over the past few years.

“For us, HWind met the criteria of a fast, independent and reliable data service, which was always as central as any parametric strategy.”

watch full video Learn more about parametric insurance and risk transfer, and the role of models and real-time data in parametric triggers.

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all of us Artemis Live Video interview focusing on reinsurance, ILS and risk transfer efficiency, available directly from our youtube channel.

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