
Parametric solutions
properties.trackTitle
properties.trackSubtitle
Why turn to us
Although parametric solutions in the form of cat bonds have been in existence since the mid-1990s, the digital landscape has only recently been able to take full advantage of the value they can deliver.
We have combined our knowledge of local markets with a scalable solution that provides fast payouts, flexible trigger designs and a lean administration.
From primary insurers and brokers to specific business sectors such as hotels, travel agencies, real estate, or ports and terminals, our parametric solutions are designed to support growth and encourage new business models.
Discover our parametric covers
Key advantages of parametric solutions
How they work
The basic concept of parametric solutions is quite simple: Parametric insurance covers the probability of a predefined event happening (e.g. a major hurricane or earthquake), paying out according to a predefined scheme instead of a lengthy claims adjustment process.
Events may refer to an index-based trigger (e.g. crop shortfall) or an event within a defined area (often referred to as a ‘cat-in-a-box’). Exemplifying the cat-in-a-box concept, a policy might be structured to pay out 50%, 75% or 100% of a predefined limit for a Cat 3, Cat 4 or Cat 5 hurricane occurring within a 50-mile radius around the client’s point of interest. The notion of ‘point of interest’ is an interesting feature of parametric cat-in-a-box solutions: The client defines a ‘point on the map‘, i.e. a long-lat geo coordinate. Hence, the cover is not limited to the insured’s own locations but can also include infrastructure critical for the client.
Since the payout is based on independently verifiable and unambiguous parameters, the predetermined payment is made quickly, simply and without lengthy adjustments.
In addition to off-the-shelf solutions for standard perils like earthquakes and tropical cyclones, we also develop tailor-made concepts for other hazards such as wildfires, floods, or rainfall/drought. Our experts will design the best solution for you, taking into account both regulatory, legal and accounting aspects, as well as reporting and trigger requirements.
Insurance and derivative solutions for weather risks

Over two-thirds of the global economy is dependent on weather conditions. Use our innovative insurance solutions to mitigate your weather-related risks:
- Protect your company against the financial consequences of unfavourable weather conditions, and other climate risks, with weather derivatives or weather insurance based on parametric triggers, which reimburse lost revenue and any additional costs incurred. (More)
- In an energy-hungry world in which technology-based economies are becoming more demanding, plant owners, investors and customers alike all depend on an uninterrupted power supply. We have solutions for virtually any risk related to power generation, in particular for renewable energy, which is directly affected by the volatility of the weather. (More)
How agricultural insurance works for agribusiness

Agricultural production depends on the weather more than any other economic sector. Depending on your needs, we can structure agricultural risk transfer solutions to secure your cash flow:
- Weather index solutions allow you to manage or “hedge” weather-related risks.
- Yield index insurance: We have the right tools to price the risk of crop shortfalls and assess actual yields.
- In addition to weather data, vegetation data derived from satellite sensors can be applied as an index parameter.
- Index insurance solutions for small-scale farming funded by international donors.
Parametric solutions for large corporates and financial institutions

Beyond pure risk transfer:
Are you looking for a solution with tailor-made triggers to protect your organisation’s balance sheet when climate-related weather disaster strikes?
Our teams of parametric solution experts in Beijing, Munich, New York, Sydney and Zurich will be pleased to help.
Come and discuss your coverage gaps with us today.
One Cat - Comprehensive and rapid response to natural catastrophes

Traditional covers often only respond after a lengthy adjustment period and fail to cover all the costs for restoring business to pre-event levels. The One Cat solution concept offers an unprecedented level of transparency and a very simple payout process:
- One Storm parametric storm cover: A new and fully customisable parametric trigger solution specially designed for tropical cyclones.
- One Quake parametric earthquake cover: Should the intensity of an earthquake in a certain area exceed an agreed threshold, Munich Re will pay out according to a pre-defined matrix.
/Haug_Jonas_2018_RGB_gold.jpg/_jcr_content/renditions/original.image_file.120.120.file/Haug_Jonas_2018_RGB_gold.jpg)
/Steenwegen_Patrick_010226.jpg/_jcr_content/renditions/original./Steenwegen_Patrick_010226.jpg)


/Hartmann_Rainer_n315030_X11_1x1.jpg/_jcr_content/renditions/original./Hartmann_Rainer_n315030_X11_1x1.jpg)
/Mayer-Bosse-Alexa_1x1.jpg/_jcr_content/renditions/original./Mayer-Bosse-Alexa_1x1.jpg)
/New_Re_19_Reif_Marcel-Steffen_18666_rgb_1-1.png/_jcr_content/renditions/original./New_Re_19_Reif_Marcel-Steffen_18666_rgb_1-1.png)
/David-Stevensson.jpg/_jcr_content/renditions/original./David-Stevensson.jpg)
/marion-von-achten.jpg/_jcr_content/renditions/cropped.square.jpg.image_file.120.120.file/cropped.square.jpg)
