Taming Extreme Weather Risk

Mitigating economic risks posed by unpredictable, extreme weather events

AIR Parametric is a specialty insurance provider delivering parametric insurance solutions for businesses impacted by lost revenue due to the devastation caused by extreme weather events.

Our proprietary products and pricing models utilize leading weather data, geospatial and AI technologies, and 24/7 monitoring to ensure transparency and immediacy, and dramatically simplifying the process for customers and distribution partners.

Filling the Gap

It’s real: extreme weather events are increasing, rapidly expanding business risks and expenses associated with extreme weather.

"In 2022, extreme weather caused $165 billion in US economic loss."
- AON 2023 Weather, Climate and Catastrophe Insight

AI-enhanced state-of-the-art weather data

Traditional commercial weather-related risk coverage is limited to events that cause physical damage, such as fire and flooding. AIR Parametric’s products, powered by our AI-enhanced state-of-the-art weather data platform, fill uncovered gaps when weather events like extreme heat, deep freeze or wildfire impact a business’s revenue — with no physical damage requirement.

No other provider has built insurance solutions for these unmet needs to help small - and mid-sized businesses -- until now.

zones in continental US with 24-7 monitoring, ensuring specific custom modeling and measurement
unique weather observations over 50 years, creating risk insights
US economic loss due to weather events (US, 2022)
AIR Parametric’s data engine computes billions of weather data elements to deliver state-of-the-art parametric weather peril risk management tools.

“The financial impacts of climate change are affecting businesses now, and the risks will only increase as the planet continues to warm.” – Michael Bloomberg, CEO Bloomberg LP

2023 Global Severe Weather Coverage Gap = 68 %

Global insured losses were $313 billion in 2023, a year impacted by severe storms, wildfires, droughts and floods. In the US, total economic losses were $165 billion – 65% above the average since 2000.

Insurance covered only $100 billion, creating a significant coverage gap and a massive market opportunity

What is Parametric Insurance?


Fundamentals and the role of Parametric Insurance

Parametric covers are alternative risk solutions provided by insurance and reinsurance companies that enable organizations to finance or to transfer risk in a non-traditional way. The solutions revolve around a measurable index and are based on predefined triggers or pay out mechanisms – without necessarily needing physical damage to occur. As climate-related weather risks become increasingly complex and unpredictable, the requests for such innovative parametric insurance structures have been increasing.

Parametric insurance (for a definition, see Exhibit 1), also known as index-based cover, is gaining traction, especially for weather-related events. Hazard modelling continues to improve, while weather stations and satellites capture more accurately weather-related parameters. Improved data and models enable parametric cover as an increasingly efficient, affordable and viable option in the market.
Exhibit 1: Mitigating under-insured climate v insurance

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“Navigating climate change means our industry must prepare for the risks of tomorrow, equipped with tools to measure both the near-and long-term risks.”
– Aon: 2023 Weather, Climate and and Catastrophe Insight