Parametric insurance is gaining momentum in New Zealand and the Pacific as a crucial tool for managing risks associated with natural disasters such as cyclones, earthquakes, and flooding. Unlike traditional insurance, parametric policies trigger pre-defined pay-outs based on specific data, such as wind speeds or earthquake magnitudes, offering quicker and more efficient financial relief. This model is especially beneficial for regions with high exposure to catastrophic events. As climate change intensifies, parametric insurance is expected to evolve, leveraging advanced technology and data analytics to better serve the region's unique risk landscape.

Points of discussion:

1. How has parametric insurance gained traction in New Zealand, and what key factors have driven its adoption in these regions, especially given their vulnerability to natural disasters?

2. What are the primary challenges for insurers and policyholders when it comes to parametric insurance in New Zealand?

3. Looking ahead, how do you see parametric insurance evolving in New Zealand?

4. InsurTechNZ acts as a gateway to insurtech communities in Australia and in other key markets through the Global InsurTech Alliance.

Speaker Bio: Paul Barton, is the Managing Director at Bounce Insurance, New Zealand. Paul is an expert in parametric insurance and his company is the first insurance business that provides parametric solutions for Households and businesses in New Zealand. Paul’s experience supporting customers after the canterbury and Kaikoura earthquakes set the foundation for the development of Bounce by developing a parametric earthquake proposition with a focus on providing quick cash payments to policy holders after an earthquake event.