Lockton Unveils Global Parametric Insurance Practice

Posted December 23, 2024

Lockton has announced the launch of its new Global Parametric Insurance Practice, in an initiative to provide services to clients that traditional insurance overlooks.

The new practice brings together a team of experts, including data scientists and modelers, dedicated to developing efficient parametric solutions, according to a release.

“Lockton’s investment in a global parametric insurance practice underscores our commitment to delivering resilient solutions that not only provide financial protection but also empower businesses to continue operations seamlessly despite challenges,” Peter Rapciewicz, Lockton’s U.S. head of parametric solutions, said in the release.

The parametric insurance market is projected to reach $39.3 billion by 2032, according to Global Market Insights. With an increase in natural disasters such as hurricanes and wildfires in addition to new cyber threats and supply chain disruptions affecting the market, the need for insurance solutions is on the rise.

“Over the past three years, Lockton has invested significantly in parametric expertise and resources across the U.S., Latin America, Europe, and Singapore,” Diego Monsalve, Latin America and Caribbean Head of Risk Practices and International Head of Parametric Solutions said in the release.

Parametric insurance provides faster payouts based on specific event triggers, such as storm magnitude, rainfall levels, or earthquake intensity in a defined location. Policies are often processed within days, enabling businesses to resume operations with reduced disruption.