For elements outside your control, get peace of mind now – and faster pay-outs when it matters.
Parametric insurance
Catastrophic events are out of your control, but what you can control is your protection.
Protection you can count on
As weather patterns grow increasingly unpredictable, you need reliable protection against the unforeseen. Using innovative, data-driven solutions, Parametric insurance guarantees a smooth return to business after the storm. Often used to cover natural catastrophes, parametric insurance ensures that if a pre-defined event (like a hailstorm or flood) occurs at a pre-defined location (like a building or solar farm) you’ll receive a pre-defined payout – usually within a few weeks. Sometimes even days. Possibly even hours.
We’ve got you covered
Using innovative, data-driven solutions, Lockton’s climate and stochastic modeling experts review the probability of a specific event occurring at the location you wish to cover. We then define the financial loss your business would face – and the exact payout you’d receive. So, when it comes to making a claim, the process is simple - just the results you need and expect.
How it works
A dedicated global parametric insurance team
Our experts create efficient, customized parametric solutions for Lockton clients, assessing risks that could disrupt business and protecting against losses not covered by traditional insurance.
When a parametric policy is purchased, a specific event or trigger is set
Claims are based on predefined parameters, not actual losses. Triggers can include storm magnitude, rainfall amount, or earthquake intensity within a specific geographic area.
When the set parameter event or trigger is met
You receive a payout if the parameter is met, regardless of actual damage. We know that even without physical damage, your business can be affected by surrounding damage or circumstances.
Fast payouts so you can get back to business after a disaster
Expect payment within days of a disaster. Parametric insurance offers instant liquidity, allowing your business to address costly damage without using financial reserves.

What parametric insurance covers
Natural catastrophe and weather
Hurricane
Earthquake
Flood
Hail
Tornado
Wildfire
Storm Surge
Extreme Temperatures
Drought
Soil Moisture
Renewable Yield Deficit
Wind Generation
Solar Irradiation
Hydroelectric
Carbon Credits - 1st & 3rd Party
Reputational Risk - Share Price Impact
Cyber - Cloud Outage & Ransomware
Pandemic
Terrorism - NDBI
Commodity Price - Raw Material Price Fluctuation
Transaction Volume
Hotel Room Occupancy
Why do this now?
Threats to your business, whether by nature or man-made, aren’t going to go away. The best thing you can do is be prepared and protected for anything that could impact your ability to serve your customers and cause you to exhaust your funds trying to resolve. Traditional insurance only covers a loss and could take months to pay out. Parametric covers for the event itself and will pay out quickly to cover indirect damage that could stall your operations. If you’ve been reluctant to purchase additional insurance due to costs, we urge you to consider parametric. It’s an accessible option that could address traditionally uninsurable situations and help prevent your company from closing if catastrophe strikes. So, when the next hurricane or cyberattack hits, you can rest easy doing business as usual.
Case Study: A London shop had suffered flooding for over a decade. Their insurance wasn’t covering them, and the claims process was difficult. They turned to Lockton.
- Using data, we identified the company’s risk landscape
- We established that if a zone 2 flood occurred, the insurer would pay out 80% of the pre-agreed limit
- When a flood hit in Sept 2022, our claims specialists worked tirelessly
- The company received its pay-out within 15 days.
Case study: An investment portfolio with high-value commercial properties in California faces regular wildfire threats. To ensure they had full insurance protection Lockton stepped in.
- Using cutting-edge modeling and satellite imagery, we designed a parametric policy triggered by predefined wildfire metrics.
- When the wildfire spread, our claims specialists worked tirelessly
- The client received its payout automatically to gain fast liquidity to cover repairs and lost revenue ensuring operational continuity and protecting asset value.
Our parametric insurance contact
Paul Jones
Head of Parametric Solutions UK & Europe
paul.jones@lockton.com
+442079331966

Get in touch
Parametric insurance FAQs
What is parametric insurance?
Parametric insurance uses stochastic data to pre-determine the exact amount you’d receive if a specific event took place. Flood, storm or cyber attack, it predicts the likelihood of such an event occurring and pre-defines the exact damage to your business. As soon as the event occurs, the insurer’s notified. And you receive your pay-out – without waiting or worrying.
What’s the difference between traditional insurance and Parametric insurance?
Because traditional insurance protects you against the loss of certain assets, the onus is on you to prove the damage. The insurer needs to assess your claim and decide how much to pay you – taking time and effort. Parametric insurers know exactly how much you’d receive before the event’s even taken place. And when it has, it’s not up to you to alert the insurer – because they’re already aware. Parametric insurance guarantees the outcome you need, when you need it – enabling you to get your business up and running as soon as possible.
What are the advantages of Parametric Insurance?
Speed. Because the conditions for payment are pre-defined, you can receive pay-outs within weeks, days and even hours. And because your pay-out is automatically triggered when the pre-defined parameter is met, there’s no lengthy claims process. Parametric insurance lets the data do the hard work for you.
Let’s talk
We’d love to show you the difference parametric insurance can make to your business.
Talk to our team