Why Parametric Solutions?
Parametric solutions offer a variety of benefits including increased transparency, customization, versatility and speed of payment. At Guy Carpenter, we’ve gone a step further. Our solutions also include:
- Basis Risk Minimization: We use advanced optimization techniques to minimize basis risk so you can purchase more efficient parametric coverage.
- Model Risk Reduction: We conduct several sensitivity tests and employ model smoothing techniques to help clients understand and reduce the volatility of expected payments.
- Versatility Deployment: Our flexibility of structuring and supporting risk capital, via (re)insurance or capital markets, allows coverage to be placed as efficiently as possible.
- Research Backing: Our products are supported by extensive research which has been shared via numerous scientific publications.