Basis risk and a small direct market are challenges for parametric ILS
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Basis risk and a small direct market are challenges for parametric ILS

Deals would need to be sized at $50mn plus for transfer to capital markets.

By Jai Singh
September 22, 2025
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The small size of the parametric direct insurance market and cedant concerns over basis risk are two major barriers to the development of parametric ILS products currently, sources have outlined to Insurance Insider ILS.

One

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Topics

Analysis ILS managers Property treaty Insurers Reinsurers Capital markets Parametric Catastrophe bonds InsurTech North America
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