New tech has cut parametric basis risk ‘considerably’: WSIA panel
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New tech has cut parametric basis risk ‘considerably’: WSIA panel

Daniel vetter and Alex kaplan.jpg
Daniel Vetter (L) and Alex Kaplan (R)

More advanced technology and analytical methods have helped parametric underwriters cut the risk that policies fail to respond as planned, according to senior executives working in the sector.

“The advent of radar technology, satellite imagery, grounding sensor technology, and anything we can derive from the sources has allowed us to minimize basis risk quite considerably,” explained Daniel Vetter, who runs North America underwriting at parametric MGA Descartes.

The...

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