Exclusive: Global Parametrics partners with Canopius to become Lloyd's coverholder

By Henry Gale

April 23 - (The Insurer) - Global Parametrics has become a Lloyd's coverholder with authority to write parametric insurance for natural perils on behalf of Canopius Syndicate 4444.

The partnership is set to be announced today, according to a source close to CelsiusPro, Global Parametrics' parent company.

Global Parametrics will build a portfolio of parametric business for Canopius under a binding authority agreement, with an initial focus on tropical cyclone, earthquake, flood and excess rainfall perils.

"This partnership enables Canopius to deploy risk capacity for parametric solutions globally, which represents an attractive opportunity to further expand parametric insurance as a scalable solution," said Canopius' UK chief underwriting officer Alois Rouffiac. "We believe these products can address the growing protection gap in regions where underinsurance remains a pressing issue."

Mark Rueegg, CEO of CelsiusPro Group, said joining the Lloyd's market as a coverholder would foster the parametric specialist firm's ability to help clients and communities become more resilient.

Global Parametrics was founded in 2016 with early investment from the German and UK governments to help vulnerable populations recover from natural disasters. It was acquired by CelsiusPro in 2023 and continues to manage the Natural Disaster Fund, a government-backed risk transfer fund which shares risks with Hannover Re.

The company recently hired five disaster risk finance specialists from WTW, as first reported by Parametric Insurer earlier this month.

Canopius' partnership with Global Parametrics is one of the specialty (re)insurer's first forays into the growing parametric insurance market, which other Lloyd's insurers such as Ascot and NormanMax have entered in recent years.