How parametric solutions can help captives manage natural catastrophes risk

It is said that three in every four (or as many as 80% of) corporate insurance buyers have some form of exposure to weather-related risk. Natural catastrophes cause widespread devastation, tragic loss of life and huge economic losses. Last year, insured losses from natural catastrophes totalled more than US$75 billion, according to estimates.

In this article, Christelle Castet, climate risk specialist at AXA Climate in Paris, and Owen Williams, head of the captive centre of excellence at AXA XL in London, explain how parametric solutions can help risk managers to transfer weather-related risks and how captives can be part of the solution.

Topics covered:
• Why does natural catastrophe risk pose such a challenge for risk managers?
• How do parametric solutions help to transfer weather-related risk?
• Are captive owners starting to use parametric solutions?
• What are the other potential benefits to captive owners of using parametric solutions?