Through the Natural Disaster Fund’s (NDF) Technical Assistance Facility (TAF), Global Parametrics will design a parametric insurance product to help protect 17,000 low-income household members against earthquake risk in Lima, Peru.
The product will help safeguard livelihoods and mitigate the longer-term impact of earthquakes on employment and household incomes.
London, 09 November 2026 – Global Parametrics, part of CelsiusPro Group, a provider of parametric insurance products for climate and disaster risks, today announced the development and planned pilot of Peru’s first parametric earthquake insurance product specifically designed for low-income households living in progressive housing in Lima, Peru.
The pilot seeks to protect 5,000 vulnerable policyholders, supporting approximately 17,000 household members, primarily in low-income and progressive housing (the expansion of a home or building according to socioeconomic needs). The stage will lay the groundwork to scaling the product to 20,000 policyholders in its second year and for replication beyond Lima.
By initially focusing on Lima, Global Parametrics, in partnership with MicroInsurance Centre at Milliman, Three Fin Consulting, Swisscontact, La Positiva Seguros and local microfinance institutions, will be able to work closely with local stakeholders, monitor implementation and assess the effectiveness of the product before scaling. The involvement of Swisscontact Peru will enable a holistic approach to resilience building, providing further support to progressive housing homeowners through risk reduction activities, including capacity building for local builders.
“Delivering this pilot initiative in Peru marks the first signed NDF TAF grant contract signed since the replenishment of the TAF by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) announced in June,” said Mark Rueegg, Founder and CEO of CelsiusPro Group. “Piloting this parametric insurance product against earthquake risk will demonstrate how innovative risk transfer solutions can provide greater financial stability for vulnerable households. By combining data with local expertise, we are developing practical solutions that can help close the protection gap and build greater resilience to natural hazards.”
Peru is highly vulnerable to earthquakes, sitting on one of the world's most active seismic zones at the convergent plate boundary between the Nazca and South American Plates. Low-income households are particularly exposed to the financial consequences of earthquakes.
Limited access to appropriate risk management tools, housing informality and the location of many homes in highly seismic areas can make it difficult for traditional insurers to provide affordable coverage for vulnerable households. The parametric approach offers a way to extend protection to these households, including those without formal property titles.
The product will also be tailored to livelihood protection, recognising that the financial impact of an earthquake can extend beyond physical damage to homes and assets. By providing financial support following a qualifying seismic event, the solution aims to help households manage immediate costs and reduce the potential disruption to employment and household incomes.
Understanding these impacts and needs of the target households is at the heart of the MicroInsurance Centre at Milliman’s support for the project. “We will integrate customer-centric design at every stage of product development and piloting, incorporating input and validation from the target market throughout the process,” said John Caroll, Consultant and Latin America Specialist for the MicroInsurance Centre. “We intend to engage in co-design approaches with our consortium partners. We are encouraged by our partners’ dedication in the lead-up to the pilot launch and are confident that, together, we can design a valuable and sustainable solution to protect low-income households and those living in progressive housing.”
Swisscontact Chairman, Thomas Meyer, added: “Our partnership with Global Parametrics, alongside our Vivienda Progressiva (VIPRO) Program, will link insurance to our risk reduction programmes, combining financial resilience with measures designed to reduce exposure to earthquake risk. Peru is a vital location for this work: according to CENEPRED (2025), over 14.8 million people and 4.6 million homes face very highseismic risk. By combining financial protection with practical risk reduction measures, we can help vulnerable households and local communities prepare for and recover from the impact of earthquakes.”
“The evolution of the insurance sector depends on our ability to keep developing solutions that respond to the country’s changing protection needs. At La Positiva, we see innovation as an ongoing commitment to expanding the possibilities of insurance and reaching new segments. This initiative allows us to explore further applications of parametric insurance in Peru and contribute to the development of solutions tailored to the needs of families living in progressive housing,” said Lourdes del Carpio, Agrarian Insurance Manager at La Positiva Seguros.
The project is supported by a catalytic grant provided by the Natural Disaster Fund’s (NDF) Technical Assistance Facility. The NDF is funded by the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW on behalf of the German Ministry for Economic Cooperation and Development (BMZ). Their public investment is blended with matching risk capacity from Hannover Re.
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About Global Parametrics
CelsiusPro Group is a technology-driven underwriter that provides climate and natural catastrophe insurance using satellite data to automatically pay out when natural catastrophes and extreme weather hits. Our platform solutions integrate climate data and risk modelling which enables insurance companies and brokers to distribute and manage tailored parametric insurance.
In 2023, CelsiusPro Group acquired Global Parametrics, a parametric risk transfer provider that supports natural disaster resilience for climate-vulnerable communities. Global Parametrics mobilises risk capacity to underwrite parametric coverage through dedicated structures, which are backed by AA-ratings reinsurers.
Through our consulting services, CelsiusPro Group provides end-to-end insights via climate risk assessments, disaster risk financing strategies, as well as structuring and risk modelling for insurance initiatives.
CelsiusPro Group advances parametric risk transfer from the fringes to the forefront in climate and natural catastrophe protection.
Learn more: https://www.globalparametrics.com/
About the Natural Disaster Fund
The NDF is managed by Global Parametrics, a CelsiusPro Group subsidiary, and is capitalised by commitments from the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Their public investment is blended with matching risk capacity from Hannover Re and MS Amlin.
CelsiusPro Group’s work focuses strongly on supporting vulnerable communities in the Global South, where climate-related disasters are increasing in frequency and severity. This involves industry partnerships with leading global insurers such as Hannover Re and Canopius as well as public-private partnerships through the Natural Disaster Fund (NDF).
Learn more: Natural Disaster Fund | Discover Climate Resilience Solutions
Media contacts
Tavistock (CelsiusPro Group)
Kuba Stawiski / Grace Cooper
+44 (0)20 7920 3150