Parametric Solutions

Weather extremes — such as heatwaves, tropical cyclones, droughts and wildfires — are becoming increasingly frequent and severe, damaging assets, interrupting businesses, creating economic uncertainty and destroying livelihoods.

When existing insurance solutions against weather extremes are ineffective, inefficient, or unavailable, businesses and communities can face financial stress and struggle to recover.

You can close these insurance gaps with our innovative parametric insurance solutions.

We tailor parametric insurance solutions to transfer your natural catastrophe and extreme weather risks more effectively and efficiently, offering quicker and more certain payouts when disaster strikes.

How do parametric solutions work?

Parametric solutions pay out when objective and independently set policy triggers are met. These policies can provide rapid liquidity, allowing businesses and communities to recover more quickly from the damaging impact of weather extremes.

Parametric solutions address the shortcomings in the response of traditional insurance policies to extreme weather events, such as large deductibles, long waiting periods, sub-limits for natural perils, limited or no coverage for non-damage business interruption and lengthy, uncertain claim settlement processes.

You can use parametric solutions to respond to a wide range of impacts and perils, either as stand-alone coverage or to provide complimentary capacity to more traditional insurance policies.

Tailored parametric insurance solutions

We design parametric solutions to fit your specific exposures and needs by modeling both the risks that matter to you and the financial impacts you wish to address.

Working with us means partnering with highly experienced risk analysts, actuaries, data scientists and placement specialists, all focused on understanding and responding to your individual risk challenges.

Our global team can deliver customized parametric solutions to meet the needs of businesses, non-governmental organizations (NGOs), cities and communities.

Whatever your requirements, we’re focused on achieving better outcomes and improved value, calling on our deep knowledge and enduring relationships with insurers, reinsurers and capital markets offering parametric solutions throughout the world.

Key benefits of our solutions

We customize our parametric solutions to your specific needs to:

What industries can use parametric solutions?

Public and private sector organizations from diverse industries across the globe can benefit from parametric solutions. Examples of organizations and specific risks that parametric solutions can address include:

• Agribusinesses suffering low yields or lower crop quality due to drought or excess rainfall
• Food and beverage companies impacted by lower sales of seasonal produce during periods of unseasonal weather
• Construction projects facing unbudgeted delays in completion due to cold, heat or excess rainfall
• Renewable energy businesses producing less energy due to lack of wind, rainfall or sun
• Energy retailers seeing decreases in demand in mild winters
• Leisure and hospitality organizations attracting fewer visitors during periods of good weather or restrictions during pandemic
• Aviation businesses suffering loss of revenue or increased costs when events such as severe weather conditions restrict air traffic movements
• Mining businesses incurring loss of production, increased operational costs and third-party liability following earthquakes, flooding or landslides
• NGOs needing additional financial resources to support vulnerable communities following natural disasters
• Cities or sovereign borrowers requiring liquidity following predetermined natural catastrophe events.

To discover a smarter way to close your insurance gaps using our tailored parametric solutions, get in touch.

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).