Data, disasters and the future: Redefining the road map for parametric innovation

Marco Carrara, senior structurer & head of parametric, SRS Altitude has been nominated for Intelligent Insurer’s ‘Leaders in Parametric’ programme. Carrara leads the modelling, pricing, structuring and underwriting of all parametric natural catastrophe solutions at SRS Altitude, serving both corporate clients and their captives. He also manages the parametric Nat Cat portfolio, overseeing strategy, performance and reporting.

He joined SRS Altitude in February 2024 after more than five years of specialised experience in parametric catastrophe insurance. Following his BSc and MSc in earth sciences, with a focus on geophysics, from ETH Zurich, he began his career in 2018 at Swiss Re’s public sector solutions team, working on parametric transactions for governments.

In 2019, he became a founding member of Swiss Re corporate solutions’ parametric Nat Cat team, where he helped build the company’s reputation as a leader in the space. There, he structured and underwrote hundreds of parametric solutions – primarily for earthquakes and tropical cyclones – earning industry recognition for innovative, rapid and transparent insurance products.

Shaping the future of parametric insurance

As the head of parametric at SRS Altitude underwriting, Carrara brings a rare blend of technical expertise and strategic insight to the world of parametric insurance, informed by his academic background in geology and geophysics and years of hands-on experience underwriting Nat Cat risks.

Carrara’s path into the industry began early. “My experience with parametric insurance started right at the beginning of my career,” he recalls. “After earning my degree, I was looking for a role in catastrophe modelling and joined a public sector team. Because of my background in seismology, I was assigned to a project on parametric earthquake insurance for the Italian government. That’s when I first discovered parametric insurance.”

It was a perfect fit. “It was very simple for me to understand – a predefined payout triggered when a measurable event occurs. As I developed as an underwriter, understanding risk became essential and this model aligned perfectly with my skillset.”

Carrara’s academic grounding made the transition seamless. “Analysing seismic hazards felt like a natural extension of what I had studied. Parametric insurance just made sense.”

Educating the market

One of his key responsibilities today is helping clients understand parametric products – an area that still requires tailored communication.

“Our task is to listen closely, identify their starting point and design solutions that truly fit client needs.”

“At Altitude, we pride ourselves on our deep expertise and a highly bespoke approach,” he explains. “We work hard to align our products with the client’s level of understanding and their specific expectations.”

The greatest challenge? Meeting clients where they are. “There’s no one-size-fits-all approach. Some are familiar with the concept, others not at all. And sometimes, traditional insurance experience brings preconceptions that don’t translate well. Our task is to listen closely, identify their starting point, and design solutions that truly fit their needs.”

Where parametric excels

Carrara sees strong potential for parametric insurance in scenarios where traditional coverage falls short. “It works especially well in regions or industries that have already experienced major events – places where traditional insurance often includes exclusions, high deductibles or indemnity delays.”

He cites Caribbean coastal hotels or energy infrastructure facing frequent tropical cyclones as prime examples. “Parametric insurance thrives where speed, transparency and payout certainty matter most.”

Climate change is also driving interest, but with new complexity. “Volatile weather patterns are increasing awareness and demand – but they also make modelling more difficult. Changing hazard frequency and severity affects pricing, though the core design of parametric products remains stable.”

The future is precision

Carrara believes parametric insurance is evolving fast – and for the better. “The next generation of products focuses on intensity, not just broad indicators like earthquake magnitude or cyclone category. That shift reduces basis risk and makes coverage more relevant to the actual impact.”

Advances in data – especially satellite imagery and on-site sensors – are pushing boundaries. “We’re now able to develop highly accurate, location-specific solutions which opens the door to more meaningful protection for clients.”

Artificial intelligence will also be a game-changer. “AI will revolutionise underwriting and modelling,” Carrara says. “With increased efficiency, we can deliver tailored solutions not just to large corporations, but to smaller clients and SMEs – groups that have been underserved so far.”

Words of advice

If he could speak to his younger self, Carrara would emphasise the importance of market engagement. “Early on, I focused almost entirely on the technical side – modelling and product development. That’s where my passion was. But I missed opportunities to connect with clients and understand what really drives demand.”

Today he sees things differently. “Those pain points – what keeps clients up at night – should always be the starting point for innovation.”

Carrara’s journey underscores the value of combining technical depth with client-centric thinking. As the landscape of natural catastrophe risk continues to evolve, his vision and leadership position him at the forefront of parametric insurance innovation.

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