Gallagher Specialty launches Parametric Insurance Centre of Excellence

Gallagher Specialty has created a Parametric Insurance Centre of Excellence designed to respond to changing market conditions and client demand.

The centre of excellence reportedly includes a team of climate risk specialists, parametric brokers, an actuarial and modelling team, and risk modelling technology developed by Gallagher Specialty.

“This specialist team will provide clients with advice on alternative risk transfer mechanisms to strengthen their traditional insurance portfolio and to support clients’ ongoing resilience and adaptation journeys,” the firm explained.

According to Gallagher, the actuarial and modelling team is made up of 15 risk professionals, including actuarial and catastrophe exposure modelling specialists with access to a wide range of catastrophe models in partnership with market-leading risk management groups RMS and AIR.

The practice is led by James Bosley, who has been appointed Head of Climate Strategy for Gallagher Specialty.

The firm noted that he has a wealth of experience advising clients on risks associated with climate risk transfer, parametric solutions and advisory services. Before joining Gallagher, Bosley was the UK Head of Insight Strategy Consulting at Marsh as well as a member of the Marsh Global Climate team.

Commenting on the new centre of excellence, Bosley said, “With the increase in frequency and severity of natural catastrophes, as well as the associated changes in weather patterns, brokers must think more broadly about clients increasing exposures.

“Not only must we help them de-risk, but also help provide a level of resilience. Parametric insurance, with its transparent triggers, quick pay-outs and ability to address non damage business interruption, is uniquely placed to assist with this and combat the increased cost of revenue impacts from weather and/or natural catastrophe events.”

Bosley continued, “Parametric solutions are incredibly versatile and we have used them for a variety of exposures across a broad range of industries, including property, heavy industries, municipalities, agriculture, financial institutions and real estate.

“They have provided and continue to provide for coverage gaps, sublimit challenges with traditional coverage, higher retentions and deductible buy downs.

“We are continuing to build and explore further capabilities to enable us to effectively assist our clients’ in navigating this transforming risk landscape.”