Global Parametrics provides solution to world’s most remote habitable island
Global Parametrics (GP), a provider of parametric protection against climate risks and natural disasters in emerging markets, has structured a solution to provide parametric protection against extreme windstorms for the Tristan Lobster Processing Facility, the world’s most remote habitable island Tristan da Cunha, a British Overseas Territory in the South Atlantic.
The solution has been structured as a derivative issued by GP’s Natural Disaster Fund (NDF) with Ovenstone Agencies as counterparty. Global Parametrics structured the solution using the ECMWF ERA5 weather dataset.
Global Parametrics’ platform uses climatic, seismic and financial data to create extreme weather and natural disaster models and forecasts, enabling parametric risk protection. Unlike traditional insurance, it pays out on the occurrence of events rather than losses incurred.
Toby Behrmann, Global Parametrics’ innovation & partnerships lead, said: “When we were approached by the Administrator of Tristan da Cunha, we knew that this unusual situation would be a test of our ability to provide a risk transfer solution in the most remote of locations where other alternatives are unviable, and we have passed with flying colours. This is a textbook case of Global Parametrics working together with Government and commercial partners to fulfil our mission of protecting fragile livelihoods in the face of extreme weather events.”
Andrew James, CEO of Ovenstone Agencies, added: “We are pleased to have worked with the Global Parametrics team to develop an innovative solution to provide cover for the Tristan Lobster Processing Facility, a key Tristan asset that protects jobs and income on the planet’s most remote inhabited island, at a time when it is challenging to obtain traditional insurance cover.”
Daniel Wilcox, private sector development advisor at the UK’s Department for International Development (DFID), said: “The UK Government’s Department for International Development, through the Natural Disaster Fund (NDF) was pleased to support this transaction. As a collaborative effort with our partners at the Foreign and Commonwealth Office such an innovative transaction outlines the importance of building resilience to extreme weather which is key to the ongoing prosperity of Tristan Da Cunha and other British Overseas Territories. I am delighted that Global Parametrics was able to structure a solution for Ovenstone Agencies (Pty) Ltd which will ensure the continued operation of the Island’s fishery.”
