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Corporate buyers increasingly filling gaps with parametric cover - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Corporate buyers increasingly filling gaps with parametric cover by Claire Wilkinson Megan Linkin speaks at a Riskworld session on parametric insurance coverage Monday in Philadelphia. Catastrophes , Claims Management , P/C Insurers , Property , Reinsurance , Technology Swiss Re May 4, 2026 PHILADELPHIA – Parametric insurance is gaining traction among corporate buyers across a widening range of industries as companies look to address gaps in traditional property programs and expand coverage for natural catastrophe risks, an expert said Monday at the Risk & Insurance Management Society’s Riskworld conference. Risk managers are using parametric coverage to fund deductibles, emergency response and to cover exposures that are tough to insure in traditional markets, said Megan Linkin, head of parametric natural catastrophe for the Americas region and senior vice president at Swiss Re Corporate Solutions. Early adopters included public-sector entities, but parametric insurance has since been taken up by hospitality, energy, utilities and industrial companies, with demand increasing following major hurricanes in 2017, including Harvey, Irma and Maria, and more recent Gulf Coast storms, she said. Corporate buyers are increasingly incorporating parametric coverage alongside traditional insurance programs to address gaps in catastrophe risk financing, Ms. Linkin said. Limits vary. “For the larger corporate programs, I would say the general sweet spot is between $25 million to $30 million, but we see customers buy $10 million to $15 million, and we can do up to $100 million for hurricane and earthquake in the U.S.,” Ms. Linkin said. Parametrics offer a faster and more transparent claims process, she said. Unlike conventional insurance, parametric policies pay out based on the intensity of an event — such as wind speed, earthquake shaking or hail size — rather than the actual loss incurred. Payouts can be used flexibly, including to cover deductibles or nonphysical business interruption losses, she said. Minimum premiums typically start at about $50,000 for perils such as flood, tornado, hail and earthquake, and about $100,000 for hurricane coverage. Claims experience has reinforced interest among buyers, with payouts typically occurring within days or weeks rather than months, she said. Following hurricanes Ian and Nicole in 2022, a Florida-based operator of multiple gas stations received two payouts within 14 days of each storm. In another case, hurricane programs in the Caribbean delivered payments within three days, while a recent typhoon event in the West Pacific produced a payout estimate within 24 hours, she said. Since 2020, Swiss Re Corporate Solutions has paid claims on 16 U.S. events, with an average payment time of about 12 days. “80% of the time, the money is in the insured’s bank account in 15 days,” Ms. Linkin said. “The sooner money is injected into an affected community after a natural disaster, the faster the recovery starts to occur,” she said. 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