Washington, DC and London, United Kingdom – The Demex Group, creators of a first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale and Global Parametrics, provider of parametric solutions for natural hazard and extreme weather risk in emerging economies, today announced 2 new programmes enabling financial protection for those traditionally underserved by formal risk transfer. The collaboration harnesses Demex’ core technology to develop protection for smallholders in both the Philippines and Vietnam, in order to combat climate risks and enhance community resilience.
In the Philippines, within a consortium led by Global Parametrics and including CLIMBS, IBISA Network and the International Centre for Tropical Agriculture (CIAT), the initiative is developing a novel new protection for agricultural cooperatives.
The overall objective of the product offering is to help cooperatives finance agricultural entrepreneurs against hydrometeorological risks, in order to build resilient and sustainable communities. The consortium provides a meso-level solution; for the initial transaction, the product will be offered to four savings and credit cooperatives and one agricultural cooperative affiliate, with the aim to rapidly scale for coming seasons.
Coffee production provides a livelihood for 2.6 million people in Vietnam, including over 600,000 smallholder farmers. Climate change threatens to become an environmental disaster for farmers due to decreased water availability, pest and disease attacks and more frequent extreme weather events. Global Parametrics deployed the Demex Solutions Center to structure a parametric extreme rainfall protection for ECOM coffee group in the Central Highlands of Vietnam. This programme is the first of its kind whereby a global trading entity is supporting its smallholder producers with a non-subsidised climate resilience product, acting as a benchmark for future programs.
Global Parametrics and Demex are improving coverage for the most remote locations with unparalleled quick, efficient, and comprehensive coverage across a range of perils including excess wind, drought, flood, and tropical cyclone.
Alin Radu, Head of Product and Structuring for Global Parametrics said, “Demex enables us to rapidly price and settle high volumes of transactions. This gives us the capability to easily replicate, scale and enhances our ability to operate anywhere in the world.”
Steve Bennett, Head of Product for Demex said, “We’re excited to work with Global Parametrics to create secure and scalable solutions that are specifically designed for hyper-local climate safeguards.”
Hector Ibarra, Chief Executive Officer for Global Parametrics said, “We are delighted to partner with Demex who have not only furthered our offering but also boosted our ability to provide innovative climate protection and resilience solutions to the underserved. We look forward to continue to work together in supporting this commitment.”
Ed Byrns, Chief Executive Officer for Demex said, “Global Parametrics’ focus on traditionally underserved communities is an important part of the ecosystem for climate resilience. This initiative is an important step toward our Demex mission to make it simple for businesses to financially protect themselves from climate-linked operational risk at a global scale.”
In partnership with 
About The Demex Group
Demex technology is a first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale. With increasingly variable weather conditions, Demex offers businesses the ability to manage risk and create opportunity.
Demex enables businesses to identify and implement climate risk transfer solutions by seamlessly integrating the weather data, cashflow modeling and channel partners required to provide coverage that’s tailored for each customer.
Demex shields customers from the financial surprises of volatile weather so that they can grow their businesses. Learn more at www.thedemexgroup.com
About Global Parametrics
Rethinking risk to build more inclusive resilience: Extreme weather events and natural hazards are being intensified by climate change, increasing the frequency and intensity of economic shocks which disrupt business and threaten livelihoods.
Established in 2016, Global Parametrics is a specialty provider of parametric solutions for natural hazard and extreme weather risk in emerging economies. Working with the private, public and third sector, GP uses its innovative climatic, seismic and financial risk modelling to rethink resilience for a new era of risk. Learn more at: https://globalparametrics.com/
Related news
- News
- September 6, 2023
CelsiusPro Acquires Global Parametrics, Further Strengthening its Climate and NatCat Risk Solutions and Global Presence
· Swiss-based CelsiusPro will contribute its award-winning climate risk products, technology, and consulting services, aimed primarily at developed markets.
· UK-based Global Parametrics will bring the Natural Disaster Fund, a risk capacity pool committed by British and German government agencies, focused on developing countries.
· Offering will benefit clients in sectors including property, agribusiness, re/insurance, microinsurance, nature-based solutions, and international development.
ZURICH/LONDON, 6 September 2023 – CelsiusPro AG announced today the acquisition of Global Parametrics Holding Company Limited, in a transaction that significantly strengthens its global capabilities to offer parametric risk transfer solutions to both private and public sector clients in developed and developing economies.
The combined CelsiusPro and Global Parametrics group creates an even stronger offering along the value chain of climate and Nat Cat risks, opening new possibilities for businesses, governments, NGOs, and communities to build resilience against perils such as hurricanes, floods, earthquakes, and drought.
The acquisition complements CelsiusPro’s expertise in climate technology and parametric insurance design, structuring, and underwriting, primarily in developed economies, with Global Parametrics’ experience in delivering disaster risk management response in developing countries. Moreover, both companies will combine their expertise as Managing General Agents (MGAs) to attract and deploy additional risk capacity.
After the merger, the Global Parametrics team will continue to manage the Natural Disaster Fund (NDF), a risk capacity pool backed by commitments from the UK Government’s Foreign, Development and Commonwealth Office (FCDO) and by the German Federal Ministry for Economic Cooperation and Development via KfW, Germany’s development bank. The NDF shares risks with global reinsurer Hannover Re, one of Global Parametrics’ longstanding key partners.
Mark Rueegg, CEO of CelsiusPro, said: “The acquisition combines CelsiusPro’s expertise in climate technology and parametric insurance with Global Parametrics’ asset management approach to climate risk through the NDF and its MGA. This is key to our value proposition, as we see an increasing number of NatCat financing facilities, such as the Global Shield initiative launched at COP27, are looking for experts on parametric solutions and risk capital deployment. We are enthusiastic about the strategic fit between CelsiusPro and Global Parametrics, and welcome our new colleagues to our group.”
Angus Kirk, CEO of Global Parametrics, said: “We are grateful to our founder investors, FCDO and KfW (through the InsuResilience Investment Fund, IIF), for their support in the early stages of Global Parametrics’ development. We are very excited about the next chapter with CelsiusPro. This partnership offers numerous opportunities to expand and enhance our offerings, thereby increasing and accelerating our impact on building resilience in underserved communities against the effects of climate change and natural disasters.”
The combined group will serve clients from its offices in Zurich, Sydney, and London.
- News
- July 12, 2023
Expanding protection for smallholder farmers in Africa with One Acre Fund and Howden Broking
Global Parametrics is pleased to announce the expansion of our parametric protection scheme with One Acre Fund for smallholder farmers. We and One Acre Fund have partnered with international insurance group, Howden Broking, to expand the programme this year in Rwanda.
GP has been working with One Acre Fund since 2020 on a parametric solution for excess rain and drought risk, with payments intended to provide financial protection and resources to help farmers mitigate the impacts of extreme weather and improve livelihoods with climate smart investments through One Acre Fund loan protection.
Key highlights of the partnership include:
🔹 2020 One Acre Fund and GP began working in Tanzania on a parametric solution for excess rain and drought risk.
🔹 2022 scaled up to include Tanzania and Malawi, protecting 175,000 smallholder farmers.
🔹 2023 scaled up to include Rwanda, benefiting a further 800,000 people.
🔹 $650,000 expected payout this year following the ongoing East African drought and Cyclone Freddy.
The solution is backed by the Natural Disaster Fund, a public-private partnership managed by Global Parametrics with seed investment from the UK’s Foreign, Commonwealth and Development Office and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) via KfW, with global reinsurer Hannover Re providing matching capacity.
Read more here: https://www.reinsurancene.ws/global-parametrics-one-acre-fund-partner-with-howden-to-expand-parametric-scheme/