Parameter Climate introduces the Bermuda Transformer to expand risk syndication beyond traditional capital sources.

Parameter Climate, a specialized underwriter and advisor focused on parametric climate and weather risk transfer, has launched a Bermuda-based transformer vehicle, Parameter Capital Bermuda Ltd, to enhance access to its transactions and facilitate the syndication of parametric risk to non-traditional capital sources.

This new structure is designed to simplify the process for a wider range of investors to participate in climate and weather risk-linked parametric products. As interest from alternative and insurance-linked securities (ILS) capital providers in parametric risk investments grows, Parameter Capital aims to streamline engagement and broaden participation in the risks originated by the company.

Since its inception in 2024, Parameter Climate has provided advisory and brokerage services to protection buyers, successfully arranging over $100 million in parametric weather transactions. The company also licenses ClimateDelta, its proprietary climate risk transfer analytics platform, which has already attracted several global subscribers in its first year.

“Our initial hypothesis was that the parametric climate and weather risk market was constrained by a lack of analytics, intermediation, advisory services, and broad capital access,” said Martin Malinow, Founder and CEO of Parameter Climate.

Currently, most parametric climate and weather risk transactions are syndicated among a limited group of global insurers and reinsurers. However, Parameter Climate believes that meaningful market growth depends on extending syndication beyond traditional capital providers.

Domiciled in Bermuda and managed by insurance and ILS facilitator Nascent Group, Parameter Capital is positioned as the first dedicated parametric transformer designed to connect industrial protection buyers with alternative capital sources.

“With ClimateDelta being adopted by a growing number of market participants and our advisory and distribution businesses gaining traction, launching Parameter Capital was the natural next step,” Malinow explained. “It will enable risk syndication and provide protection buyers with access to a more diverse ecosystem of capital providers.”

He further noted that many industrial buyers of parametric protection have limited experience with collateralized climate and weather risk solutions, which has historically restricted their counterparty options. Parameter Capital seeks to become a widely accepted intermediary, ensuring buyers can access the most effective risk transfer solutions.

Malinow concluded, “Our goal has always been to build a top-tier, technology-driven advisory and distribution firm. With Parameter Capital enhancing execution capabilities and ClimateDelta delivering advanced analytics, Parameter Climate is poised to set itself apart in the evolving parametric risk market.”