Parametric insurance, a solution that pays out based on the occurrence of predefined events rather than traditional loss assessments, is gaining traction for its efficiency and transparency. However, the successful deployment and uptake of parametric insurance hinge critically on the role of an educated broker.

Parametric insurance differs fundamentally from traditional indemnity insurance. It utilises a pre-agreed trigger, such as a hurricane's wind speed or the magnitude of an earthquake, to activate pay-outs. This model offers swift financial relief, mitigating the often lengthy and complex claims process typical of traditional insurance. The precision and speed of parametric insurance can significantly benefit clients in sectors prone to catastrophic events, including real estate, agriculture, energy, and tourism.

The role of an educated broker

• Expertise in complex products: Parametric insurance products require a deep understanding of how indices are constructed, the statistical models underpinning risk assessments, and the nuances of trigger mechanisms. A dedicated parametric team possesses this specialised knowledge, ensuring that they can tailor products to meet clients' precise needs.
• Risk assessment and customisation: Unlike traditional policies that often have a one-size-fits-all approach, parametric insurance is a bespoke solution. This results in customisable policies that align precisely with the client's risk exposure and financial requirements. The ability to personalise insurance solutions is a competitive advantage, enhancing client satisfaction and retention.
• Fostering trust and transparency: Objective and transparent, parametric insurance has the potential to build trust with clients. Educated brokers play a vital role in fostering this trust by providing clear information and managing client expectations effectively. Their credibility and professionalism can significantly influence the perception and acceptance of parametric products.
• Advocacy and education: Educated brokers engage in continuous education, both for themselves and their clients, staying updated on technological advancements, emerging risks, and new product developments. By championing parametric insurance, they drive its adoption, fostering a more resilient and responsive insurance landscape.

How Miller’s Parametric Solutions team can help

Miller has one of the only fully dedicated global parametric broking teams in the market. The team is composed of experts with extensive experience and deep knowledge of parametric insurance. Their singular focus on parametric products ensures we can deliver the highest level of service and expertise for our clients. 

Led by Alice Glenister, the team is at the forefront of innovation, developing bespoke solutions to meet the unique needs of our clients across various sectors. 
Our dedicated team put excellence and innovation in risk management at the forefront of their work, ensuring that our clients are well-equipped to navigate the uncertainties of modern parametric risks.