Democratising parametric modelling

Parametric triggers hold the potential to create a mini-revolution in catastrophe reinsurance, but their use to date has been limited. The appropriate modelling tools are few, and they rest in the hands of only a small group of brokers and specialists. Very few buyers, investors, underwriters, and intermediaries have easy access. However, the black box has now been opened, lifting the lid off these inexpensive and completely transparent risk contracts.