Core Insights - The Philippines has launched its first parametric insurance solution aimed at protecting the livelihoods of 14,200 small-scale fishers, marking a significant step in climate risk management [1][3][4] Government and Partnerships - The initiative is a collaboration between the Bureau of Fisheries and Aquatic Resources (BFAR), the Philippine Crop Insurance Corporation (PCIC), global conservation organization Rare, and Willis, a WTW business [1][2] - Funding for the project comes from the Ocean Risk and Resilience Action Alliance (ORRAA), supported by the Governments of Canada and the UK [2][12] Insurance Details - The parametric insurance is designed to mitigate income losses due to adverse weather conditions, providing up to US$100 per policy cycle to offset income loss from dangerous weather [4][5] - The insurance utilizes a weather index based on wind speed, sea state, and rainfall to determine payout eligibility, ensuring timely compensation for lost fishing days [4][6] Impact on Fishers - The program aims to reduce financial pressure on fishing households and promote sustainable fishing practices, thereby enhancing the resilience of coastal communities [5][6] - BFAR will act as the policyholder, demonstrating government support for innovative climate risk solutions [4][6] Future Prospects - If successful, the pilot program could evolve into a nationally scalable tool for protecting coastal livelihoods, complementing existing insurance coverage [6]

Core Insights - Hurricane Melissa, a Category 5 storm, made landfall in Jamaica, likely triggering a full payout from a $150 million catastrophe bond designed for the island [1][2][3] Group 1: Catastrophe Bond Details - The catastrophe bond, structured by Aon, provides parametric coverage for Jamaica against losses from named storms, effective through 2027 [2] - Jamaica is the first Caribbean government and the first small island state to independently sponsor a catastrophe bond, showcasing the value of private market funding [3] - The bond's payout is contingent on the storm's central pressure being at or below 900 millibars upon landfall [3][4] Group 2: Payout Process and Timeline - Early data indicates Hurricane Melissa's pressure remained below 900 millibars in several areas, with verification ongoing [4] - The review process for payouts typically takes 2 to 3 weeks, with potential payouts to Jamaica occurring in approximately 1 month [5] - Aon utilized innovative data sources to facilitate faster payments for this event compared to previous transactions [5] Group 3: Market Context and Growth - The catastrophe bond market has grown over 50% since the end of 2022, reaching nearly $55 billion, indicating increasing popularity of such financial instruments [8] - Public-private partnerships, like Jamaica's, demonstrate how parametric insurance can provide rapid and transparent relief after severe storms [8]

So Lee, what are we here to talk about today. Extreme weather is forcing insurers to make big changes to their business model and get more creative. So what impact might that have.Insurers have had to pay out more than hundred billion dollar a year in natural catastrophe losses every year this decade. This year has already seen heavy insured losses with January's wildfires in LA costing the industry 30 to40 billion. LA is just one of many destinations where residents are moving into harm's way.In the US, pe ...

Market Trends - Parametric insurance is gaining popularity among large corporations [1] - The parametric insurance market is estimated to almost double to $34 billion by 2033 [1]