Lockton Launches Global Parametric Insurance Division

Lockton, the independent insurance and reinsurance brokerage firm, has officially launched its Global Parametric Insurance Practice, consolidating its expertise in parametric risk transfer into a specialized unit.

The new practice will integrate Lockton's capabilities across areas such as data science and risk modeling to create tailored parametric solutions, addressing client risks that traditional insurance often cannot cover.

“Over the past three years, Lockton has heavily invested in parametric expertise and resources across the U.S., Latin America, Europe, and Singapore,” said Diego Monsalve, Latin America and Caribbean Head of Risk Practices and International Head of Parametric Solutions. “This global team is uniquely positioned to tackle our clients’ risk management challenges through innovation and deliver the high-caliber solutions they expect. We’re excited to advance this initiative to support our clients further.”

Peter Rapciewicz, Executive Vice President and Practice Leader of Alternative Risk Solutions and U.S. Head of Parametric Solutions, added, “Parametric insurance solutions provide significant benefits, offering businesses a more efficient and cost-effective approach to uncertainty. Lockton’s Global Parametric Insurance Practice highlights our commitment to delivering resilient solutions that ensure financial protection while enabling businesses to operate seamlessly through challenges.”

The new practice aims to leverage expertise from multiple global regions to offer comprehensive risk assessments, employing data scientists and advanced analytics to design customized triggers for insurance structures. These solutions are designed to complement traditional policies by filling coverage gaps cost-effectively.

Lockton recognizes parametric insurance as a growing area in the insurance and reinsurance sector, with increasing interest from insurance-linked securities (ILS) funds and investors. To further explore this potential, Lockton is featuring a dedicated panel discussion on parametric solutions as an ILS investment opportunity at its upcoming New York conference.