New London parametric exchange created

UK-based insurtech Yokahu has launched cat-risk.com, which it claims is the first independent, many-to-many parametric exchange for the London re/insurance market. 

cat-risk.com connects brokers, carriers, and data providers to streamline parametric insurance transactions. Yokahu said that it significantly reduces friction in the market and ensuring fast, transparent payouts when disasters strike.

“Built to enhance rather than disrupt the existing London market ecosystem, cat-risk.com transforms a traditionally slow and fragmented process – cutting quote and bind times from days to mere minutes,” the company said in an announcement. “The platform enables real-time risk assessment, pricing, and seamless capacity allocation, broadening the ability of parametric (re)insurance to play a vital role in climate resilience and disaster preparedness.”

cat-risk.com allows for multiple carriers to co-insure risks placed on the platform based upon the individual risk appetites of the carriers. Yokahu, as a coverholder, administers each carrier’s portfolio separately and discreetly before allocating capacity to the deal presented using BiPar principles in a manner that reflects the traditions of trading at Lloyd’s but in a digital context. This allows more risk carriers to enter the parametric climate resilience market with smaller initial lines and reduced portfolio volatility.

Not only reducing friction in transactions, the platform ensures that policyholders receive fast and transparent payouts by monitoring real time weather, automating policy triggering and instantly presenting claims for approval to carriers reducing claim payment times to as little as 48 hours.

At launch the platform is integrated with leading data providers such as ReAsk and is supported by multiple major capacity providers and top-tier brokers. Designed for growth, it currently supports extreme weather risks, including hurricanes, typhoons, and storms, with limits up to $5 million per transaction. Future expansion will include earthquake coverage and higher limits, and enhanced risk insights.

Tim McCosh, founder & chief executive of Yokahu, said: “Parametric insurance has long been heralded as a solution for fast, reliable disaster payouts, but inefficiencies in placement have hindered adoption. With cat-risk.com, we are delivering on the promise of parametric insurance – removing barriers, improving accessibility, and ensuring resilience in the face of growing climate and disaster risks.”

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