’We have made a pioneering move to combine climate, parametrics and sector expertise,’ says chief executive

Howden has created a new climate parametrics division in response to escalating demand for climate derisking capabilities across industries, financial markets and the public sector.

The new unit, which was announced in a statement today (17 October 2023), will bring together (re)insurance, climate and data expertise to focus on parametric risk transfer solutions.

Parametric insurance offers pre-determined payouts based on specified trigger events. 

Howden felt that growing climate demand was ”transforming the potential scope and scale of the parametric market”.

”Howden’s new practice will be part of the solution, delivering opportunities to help parametrics fulfil its potential to derisk the resilient net zero transition and protect natural capital,” the broker said

Rowan Douglas, chief executive of climate risk and resilience at Howden, added: ”We have made a pioneering move to combine climate, parametrics and sector expertise into a unified global practice.

”As part of our client commitment to derisk their resilience to climate change and low carbon futures, Howden Climate Parametrics will demystify the concept of parametrics and deliver solutions to protect assets, lives and livelihoods.”

Specialists

The practice will bring together over 30 specialists from across Howden and the group’s underwriting business Dual, combining climate, analytics and advisory, structuring and placement, (re)insurance, underwriting and capital markets expertise.

Philipp Kusche, global head of insurance linked securities at Howden Tiger, and Douglas will colead the practice.

“Howden is scaling up and enhancing its capabilities to lead the market response to climate change,” Kusche said.

”Our collective approach and our rapidly expanding climate risk and resilience practice creates a powerhouse of parametric potential that we look forward to deploying to serve our clients and to build this vital market with our carrier partners.”