Introduction to cat-risk.com
Parametric insurance innovator Yokahu has unveiled cat-risk.com, a pioneering independent parametric exchange tailored for the London re/insurance market. This platform is poised to transform the landscape by linking brokers, carriers, and data providers, thereby streamlining parametric insurance transactions. The result is a significant reduction in market friction, ensuring swift and transparent payouts during catastrophic events.
Enhancing the London Market
cat-risk.com is meticulously designed to complement the London market’s ecosystem. It facilitates real-time risk assessment, pricing, and capacity allocation, thereby amplifying the role of parametric re/insurance in bolstering climate resilience and disaster preparedness.
Leadership Insights
Tim McCosh, the visionary Founder & CEO of Yokahu, remarked, “Parametric insurance has been lauded as a promising solution for prompt and dependable disaster payouts. However, inefficiencies in its placement have hampered widespread adoption.” He further explained, “With the launch of cat-risk.com, we are fulfilling the potential of parametric insurance by dismantling barriers, enhancing accessibility, and ensuring robust resilience against escalating climate and disaster threats.”
Platform Capabilities
The platform empowers multiple carriers to co-insure risks placed on it, accommodating the unique risk appetites of individual carriers. As a Coverholder, Yokahu administers each carrier’s portfolio separately and discreetly before allocating capacity to the presented deal. This approach employs BiPar principles, reflecting the traditions of trading at Lloyd’s but in a digital context. This innovation allows more risk carriers to enter the parametric climate resilience market with smaller initial lines and reduced portfolio volatility.
Integration and Support
At its inception, cat-risk.com integrates with renowned data providers like ReAsk and receives backing from several major capacity providers and brokers. The platform currently supports extreme weather risks, including hurricanes, typhoons, and storms, with transaction limits reaching up to $5 million.
Expert Opinions
Co-Founder Farid Tejani emphasized, “This initiative is about evolution, not revolution. cat-risk.com enhances the existing parametric insurance ecosystem by making transactions smoother, strengthening data integration, and accelerating payouts. We believe this will unlock the full potential of parametric insurance for businesses, governments, and communities worldwide.”
Yokahu CFO, Carsten Wolheimer, highlighted, “cat-risk.com represents a significant stride forward, merging financial markets expertise with innovative parametric risk transfer. By streamlining transactions and leveraging robust financial market principles, we are crafting a more efficient, transparent, and scalable solution for disaster risk transfer, fully aligned with Yokahu’s vision for a digital insurance marketplace that delivers real impact.”
