Lockton has announced the launch of a global parametric insurance team.

The new team offers expertise across multiple regions to support insureds through bespoke risk assessments, leveraging data scientists and advanced analytics to identify triggers that can address potential losses.

“Over the past three years, Lockton has invested significantly in parametric expertise and resources across the US, Latin America, Europe, and Singapore,” said Diego Monsalve, Latin America and Caribbean head of Risk Practices and international head of Parametric Solutions. “This global team is uniquely positioned to address our clients’ risk management challenges through innovation, delivering the high-calibre solutions they’ve come to expect from Lockton. We are excited to support our clients as we move forward with this initiative.”

The parametric insurance market is projected to reach the equivalent of almost £31bn by 2032, according to Global Market Insights, underscoring the demand for alternative solutions to cover gaps in conventional commercial property insurance.

Parametric insurance policies provide payouts based on specific event triggers, such as storm magnitude, rainfall levels or earthquake intensity in a defined location, which may not necessarily sustain physical damage. Parametric policies are designed to transparency and quick payouts, often processed within days of an event.

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