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Alabama parametric deal may tempt others

30 July 2010

This week, Swiss Re announced what is says is a first-of-its-kind agreement with the Alabama State Insurance Fund to provide a three-year parametric insurance cover for hurricane exposure. Reactions spoke to Swiss Re to talk about what this means for the state.

Read more: Alabama State Insurance Fund swiss re

This week, global reinsurer Swiss Re announced what is says is a first-of-its-kind agreement with the Alabama State Insurance Fund (SIF) to provide a three-year parametric insurance cover for the fund’s primary catastrophic hurricane exposure. Reactions spoke to Swiss Re to talk about what this means for the state and the way it manages cat risk.

This the first time a US state government has reached a risk transfer deal with the private market like this. The parametric solution will have many benefits for the state of Alabama, says Nikhil da Victoria Lobo, vice-president of Swiss Re's public sector unit.

“It allows [the buyer] to have coverage that is broader than you get from traditional insurance so when we talk about things such as emergency expenses, clean up costs and lost tax revenue,...


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