While the rising risk of a Super El Niño remains highly uncertain in both geography and magnitude, parametric trigger designs can add a crucial layer of granularity to climate coverage. According to Mark Rueegg, CEO of CelsiusPro Group, this flexibility ultimately allows both insurers and the insured to adapt to volatile climate conditions.
Given that the risk of a Super El Niño continues to rise, Artemis spoke with Rueegg to explore how effective these solutions truly are, and how parametric trigger designs offer effective pricing transparency compared to traditional models.
“Triggers in parametric insurance are always adjusted to local climate conditions in the territory the policy is deployed. This adds a level of granularity to the coverage that allows insured and insurer to adapt to more uncertain conditions, such as those produced by a super El Nino event,” the CEO told Artemis.
FULL ORIGINAL PUBLICATION HERE