Tag: Parametric insurance

Latin America’s Insurance Industry Braces for Rare ENSO Climate Impact

Marc
ENSO - Impact El Nino - Latin America

Latin America is bracing for a unique climatic phenomenon that could significantly impact its insurance sector. Experts from the Swiss Re Institute have highlighted the necessity of both adaptation and mitigation to increase resilience against severe weather events prompted by the El Niño-Southern Oscillation (ENSO) cycle. This cycle, predicted to shift rapidly between its phases, presents a substantial challenge to the region’s ability to protect itself from the resulting disruptions. The Phenomenon of ENSO El Niño and La Niña Explained The El Niño-Southern Oscillation (ENSO) is a climate pattern that…

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Pandemic forces Lloyd’s of London insurance contracts into review

G. Turner
Insurance contracts - Lloyd's of London building reflected in glass

The massive marketplace is re-examining the way coverage products are designed due to COVID-19. Lloyd’s of London has launched a new review of its insurance contracts, taking a new look at the way products are created and sold. The purpose is to develop simpler products in response to the COVID-19 pandemic. Insurers have suffered considerable reputational damage due to the complexity of their products. This complexity in insurance contracts has made it difficult for businesses to understand. The result has been a wave of court cases meant to decide whether…

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Hotels may recoup some coronavirus cancellation losses with parametric insurance

H. Cutner
Parametric Insurance - Hotel

Event organizers have been cancelling and delaying due to fears of COVID-19 spread. Hotels with a new type of parametric insurance launched by Lloyd’s of London last year may fare better than other players in the events industry as coronavirus concerns spread. Other players, such as event organizers, may not fare as well as this coverage won’t reach them. The parametric insurance coverage compensates hotels when there is a drop in revenue per available room below a certain established point due to circumstances that could neither be predicted nor controlled.…

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