US parametric group NormanMax launches Lloyd’s syndicate
Launch signifies official start of global parametric insurance revolution, says firm
A new syndicate at Lloyd’s has been launched by US-based parametric (re)insurance group NormanMax Insurance Holdings. Syndicate 3939, managed by Apollo, has commenced underwriting and is focused on natural catastrophe parametric (re)insurance products for hurricanes, tropical cyclones, typhoons and earthquakes globally.
NormanMax said it will “combine 21st century data and technology to create parametric solutions for clients around the globe to address the natural disaster protection gap, at a time of increased climate risk and volatility… NormanMax Syndicate 3939 is pioneering as the first syndicate devoted exclusively to natural disaster parametric (re)insurance solutions, heralding a new era of parametric (re)insurance.”
Stuart Newcombe, former active underwriter for Munich Re Innovation Syndicate 1840, will act as active underwriter for NormanMax Syndicate 3939.
Bradley Meier, CEO of NormanMax commented: “This launch signifies the official start of the global parametric insurance revolution, and we are pleased to be partnering with Apollo on this exciting journey. As the landscape of risk has changed over the past three hundred years, so has Lloyd’s. Parametric insurance represents another milestone in Lloyd’s rich history of delivering relevant innovative products similar to when business interruption insurance was introduced by Lloyd’s in the early 20th century.”
He added: “We are especially excited to be joining the Lloyd’s marketplace and for the opportunity to access Lloyd’s global licenses and reach, to deliver parametric (re)insurance products on a worldwide scale. With a commitment to best-in-class service, we are set to transform expectations and redefine possibilities within the parametric (re)insurance industry.”
NormanMax is partnering with Argenta Private Capital Limited, Alpha Insurance Analysts and the High Premium Group, “to introduce a new age in catastrophe risk transfer at Lloyd’s”, and said its private capital partners have been awarded freehold tenancy. NormanMax has also received strategic support from Helios Underwriting.
Vicky Carter, Global Capital Solutions, International said: “Guy Carpenter is delighted to have worked closely with the NormanMax team, using our in-depth capabilities in structuring and capital management to create the first parametric syndicate at Lloyd’s. Parametric products provide an innovative alternative risk-transfer solution that delivers transparency and ensure speed of payment. Such solutions can bridge critical insurance gaps, be distributed efficiently and at scale, and address issues around trapped capital. Demand for parametric products is growing and Guy Carpenter is committed to playing a central role in supporting the development of this market.”
