Parametric Solutions

Parametric Solutions - Windstorm coverage

12 March 2025

Background

An existing Energy client of Miller approached the Parametric Solutions team, looking to purchase non-standard hurricane coverage. Knowing their asset could withstand CAT 3 hurricanes, the client wanted an insurance
policy that paid out once wind speeds exceeded a CAT 3 storm.

The client had an asset that was under construction, however, construction was put on hold, making it difficult for the construction markets to provide coverage for this niche risk.

Coverage placement including windstorm was proving challenging, as the hurricane season was fast approaching, and many markets had reduced capacity to deploy. Given the timeframe, it was decided to carve-out the windstorm coverage as a parametric layer to allow the indemnity markets to focus on the risk (excluding hurricane).

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Actions

Miller’s parametric solutions specialists are the only dedicated parametric broking team in the London market. We work collaboratively with other business units across the company to design, create, and build fully bespoke parametric solutions.

Hearing that windstorm capacity was proving difficult to finalise on the indemnity policy, the Parametric Solutions team were keen to provide an innovative insurance solution that provided tailored coverage for the client, which other brokers may not have been able to deliver.

After some initial marketing from both teams, we were able to identify an approach which would provide the client with a bespoke, cost effective, and comprehensive solution.

How Miller helped

The approach was clear - the Onshore Energy team would work on the traditional placement, excluding windstorm cover, whilst the Parametric Solutions team would look to achieve a parametric limit of between USD30m - 50m from their carriers.

The Parametric Solutions team designed four structures to demonstrate the flexible and customisable nature of parametric insurance. By changing the ‘trigger’ point of the policies, the client was able to select a payout option that worked best for them.

With the ability to provide coverage to address exact needs, as well as the added benefit of rapid and hassle-free claim payments, the client was extremely happy with the hybrid parametric and indemnity insurance policy that Miller proposed.

Having regular calls with the client to provide information on how the structure would work and getting them comfortable with the parametric policy was key in getting the account placed. In the end, the client ended up purchasing a USD30m parametric policy in conjunction with the Onshore Energy team’s traditional policy.