Parameter Climate, the parametric climate and weather risk transfer focused underwriter and advisor, has announced the formation and launch of a Bermuda-based transformer vehicle named Parameter Capital Bermuda Ltd, as the company looks to broaden access to its deals and syndicate parametric risk to non-traditional capital.
The transformer structures is designed to support Parameter Climate’s strategy of making it simpler for a wider range of parties to transact parametric products indexed to climate and weather risk.With alternative and ILS capital providers increasingly attracted to parametric risk investment opportunities, this transformer structure will make it easier for those markets to engage and participate in risks originated by the company.
Parameter Climate has been offering advisory and brokerage services to protection buyers since 2024 and in that time has successfully advised on the placement of over $100 million of parametric weather transactions.
The company also licenses its climate risk transfer analytics platform, ClimateDelta, to which it has signed up a number of global subscribers in its initial year.
“Our hypothesis from the outset was that growth in the parametric climate and weather market was being hindered by a lack of analytics, intermediation, advisory and broad access to capital,” explained Martin Malinow, Founder and CEO of Parameter Climate.
Most parametric climate and weather transactions are syndicated among a relatively small group of global insurers and reinsurers today, but Parameter Climate believes that “significant market growth hinges on the ability to syndicate risks beyond traditional capacity providers,” the company said today.
The transformer, Parameter Capital, will be domiciled in Bermuda and serviced by insurance management and ILS facilitator the Nascent Group.
The company believes it to be “the first parametric transformer dedicated to connecting industrial protection buyers with alternative capacity providers.”
Malinow said, “With ClimateDelta on the desks of a growing number of market participants, and our advisory and distribution businesses gaining momentum, Parameter Capital is the logical next step as it will facilitate syndication and help protection buyers access a broader ecosystem of capacity providers.
“Most of our vertical-based protection buyers have little experience buying collateralized climate and weather protection, which has limited their choice of counterparties. Parameter Capital aims to become a commonly accepted counterparty for these buyers through which they can access various forms of capacity, thus ensuring they get the most effective execution as they manage these complex risks.”
Malinow added, “We set out to build a best-in-class, tech-driven advisory and distribution firm, and we believe that the ‘last mile’ execution services provided by Parameter Capital supported by the cutting-edge analytics on ClimateDelta will further differentiate Parameter Climate from others in the space.”
